Sunday, January 26, 2020

Development of the Petroleum Industry

Development of the Petroleum Industry Historical background Petroleum In the beginning of the XX. century carbohydrates became more and more important in the world because they were pure, easily manageable, cheap, have huge energy capacity and were available in big amounts all over the world. Petroleum can be used as a source of energy as well as a raw material in the manufacturing of plastics and fertilizers, and only very few commodities have become as vital as it, and petroleum has been the object of geopolitical confrontations as a commodity of strategic importance. At that period several geopolitical events were closely related to oil or had consequences on oil prices and supply. The decision in 1912 by the British Admiralty to convert warships from coal to oil propulsion because of speed and range advantages was the first event that led to the geopolitical importance of oil. Great Britain nationalized the Anglo-Persian Oil Company and committed itself to the protection of this resource in Persia since 1934 the country is called Iran because the country had no oil resources at all. In the beginning the United States of America did the 60% of the total exploitation, but by 1990 the undeveloped countries took over it; the Near East gave 26%, Russia 21% and North America only 17% of the whole exploitation. 80% of the known and exploitable oil resources were found in 8 countries in the world: Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Iran, Venezuela, Russia and Mexico. The first oil crisis was only a local crisis; it had no significant effect on the world market. It took place in Iran, because Mohammad Mossadeq, the prime minister of Iran, nationalized the oil companies, so English professionals went home and the country went bankrupt in 3 years. Then began the Suez crisis in 1956 when Nasser nationalized the canal. In the 50es annually 210-220 thousands of tons of cargo went through the canal and the 2/3 of it was petroleum that had to be transported to Western Europe. But after the arab-israeli war blow-up, Nasser made the canal totally unusable. As the canal had a great significance, it caused some outstanding problems provisional petroleum shortage evolved in Western Europe, so consumption was decreased, higher taxes were levied on petrol, and petrol coupons were introduced. Simultaneously Syria closed the petroleum lines in the Iranian areas and Saudi Arabia introduced embargo towards Great Britain and France. By 1957 the crisis came to an end, 90% of the petroleum export that was not transported was compensated, and at that time petroleum utilization was not so important (1956 only approximately 20% of Europes energy use) and there were no considerable changes in the prices. World War I demonstrated the increasing importance of the internal combustion engine on modern military operations, such as planes, trucks and tanks. In the 1920s motorization automobile was becoming an important mode of transportation and these years were characterized by exploding civilian demand for oil. At the same time a few primal corporations -that became the oil giants of today started to control the industry quickly. The oligopolistic commercial control on the price and the production of oil was in 1928 by the Achnacarry Agreements first established between the greatest oil multinationals of the time: the Seven Sisters. Seven Sisters of the petroleum industry The term Seven Sisters refers to seven huge oil companies that dominated since Rockefellers first gigantic monopoly the mid 20th century oil production, refining and distribution. Five of them were American and the two other were British. The American companies included Exxon, Mobil, and Socal which later became Chevron, Gulf and Texaco. The British companies were Royal Dutch Shell (it was a joint venture with the Netherlands) and British Petroleum (BP), whose interest in world oil expanded with the discovery of oil fields in Iraq and in Indonesia. Later through acquisitions and mergers the Seven Sisters have become four enormous oil companies; ExxonMobil, Royal Dutch Shell, BP and Chevron-Texaco. These corporations have invested a lot in extraction infrastructures, particularly in the Middle-East and Latin-America. They were effectively in control of the oil supply and demand of the world with a set of strategies, such as fixing production, prices and quotas. However, in several developing countries a nationalization trend started to emerge, slowly leading to the future oil supply control and shocks. In 1938 Mexico vigorously took control of its entire oil industry by expropriations, undermining its accessibility to foreign markets for a while, but generating sympathy in a lot of developing countries as a symbol against foreign exploitation of national resources. World War II. revealed to be a conflict that was strategically dominated by oil because the key weapons were air and armored forces. In 1941 the United States decided to establish an oil embargo on Japan, this was one event that triggered the war in the Pacific. The strategic objectives of Japan were to secure the resources of Southeast Asia, mainly the Indonesian oil fields, and the country has planned fast operations in order to achieve these objectives. The same year, Germanys invasion of the Soviet Union had the securing of the oil fields in the Caucasus region among its primal objectives, but both Germany and Japan failed to establish a secure source of oil, in 1945 that contributed to their overthrow by strategically more mobile allied forces. About 86% of the worlds oil supply was controlled by the allied nations. The increasing geopolitical importance of the Middle-East was underlined by the post World War II. era, as from that region the United States and Europe were importing growing quantities of oil. In1948 in Saudi Arabia a new source of oil was discovered, called Ghawar Field, that accounted for the largest conventional oil field in the world; more oil reserves were discovered in this region, so the supply was shifting rapidly. They were trying many times to integrate countries like Iran, Iraq and Saudi Arabia in alliances with Western powers, but a series of geopolitical events, just like the creation of the OPEC and Islamic nationalisms, would complicate access to oil resources. The OPEC The western Seven Sisters wanted to achieve a powerful economic control of oil production, so many producing countries most of them were from the Middle-East had a common goal: to gather a bigger share of the oil incomes by controlling supply. In 1960 an organization called Organization of Petroleum Exporting Countries (OPEC) was founded at the Baghdad Conference. It contained five founding members: Iraq, Iran, Kuwait, Saudi Arabia and Venezuela, but by the end of 1971, six other nations had joined the group, they were the following countries: Qatar, Indonesia, Libya, United Arab Emirates, Algeria and Nigeria. They also wanted to maintain the oil prices. In 1968 the Arab countries founded the Organization of Arab Petroleum Exporting Countries. Throughout the post World War II period exporting countries found increasing demand for their crude oil but there was a 40% decline in the purchasing power of a barrel of oil. The balance of power shifted in March 1971. And this month the Texas Railroad Commission set proration at 100 percent for the first time which meant that Texas producers were no longer limited in the volume of oil that they could produce. It meant more significantly that the power to control crude oil prices shifted from the United States Texas, Oklahoma and Louisiana to the OPEC. There was no more spare capacity in the United States and as a consequence no tool to put an upper limit on prices. A little over two years later OPEC through the unintended consequence of war achieved a glimpse of the extent of its power to influence prices. The OPEC was unable to increase oil prices until the beginning of the 1970s. The major reasons were the importance of production in non-member countries and there OPEC members had some difficulties to agree on a common policy, since economic theory clearly underlines that cartels are bound to fail at fixing prices. Accordingly, developed countries were confident: the price of petroleum would remain relatively stable. In the early 1970s it was predicted by the American Government that by 1980 oil prices might rise to about 5 dollars per barrel. So the petroleum prices were very low and the economic growth was strong but this situation changed quickly. During the period of the Six Day War (1967) OAPEC members announced an embargo towards countries aiding Israel; Iraqi and Saudi oil lines became shut down. Then 900 tons less were exported each day and also the Suez Canal was closed at that time, so the exploitation was raised in the United States, Venezuela, Iran and Indonesia. In the end Iran and Saudi Arabia boycotted the embargo and they could manage to avoid a serious crisis. The only losers of this event were those Arab countries that were closing down the export. The embargo In the early 1970s under President Nixons order, the United States of America began shipping arms to Israel. In 1993 the Yom Kippur War broke out between Israel and Egypt (and several Arabian countries). This war gave the OPEC additional reasons to intervene: they imposed export quotas, reduced production by 25% and nationalized production facilities. The oil crisis started on October 17th 1973 and lasted until June 1974. Not long after the start of the War, when the Arab countries decided to turn to the oil weapon again; the Organization of Arab Petroleum Exporting Countries announced the reduction of oil exploitation by 5% each month in those countries supporting Israel in the conflict during the war. In their opinion Israel could stand against the attack of the other two counties because the West gave them help. They wanted to undermine Israels support, mainly the USA, so oil became a geopolitical weapon. The market became controlled by supply by oil producers, causing the first oil shock. The oil embargo affected the United States of America, its western European federates and also Japan. During this half year period the western world was facing with the strategic significance of oil and its shortage for the first time. For example in the States at the top of the crisis on even days only cars ending with even registration number and on odd days cars ending with odd number were allowed for a while to be refueled. This embargo damaged the U.S. economy so greatly that many were unsure if the country would escape such devastation. Among the few countries that were affected, the United States suffered greatly, because after they gave aid to Israel the whole oil export ended toward them. The ability to control crude oil prices was passed from the United States to OPEC, and it was removed during the Arab Oil Embargo. Prices increased 400% in 6 months, and the extreme sensitivity of prices to supply shortages became all too apparent at that time. The world crude oil price was relatively flat from 1974 to 1978, ranging from 12.21 dollars per barrel to 13.55 per barrel, but when adjusted for inflation world oil prices were in a period of moderate decline. The crisis in 1973 had a huge effect on the world market, because this year the oil export from the Near East amounted 1 billion tons, and 40% of the petroleum of the bourgeois world originates from this region England 73%, France 83%, Italy 85% As a result of the shortage of oil petrol and gas oil prices increased, so the forestalling of fuel started. This resulted in bigger shortage and prices became higher and higher. In America the rise of prices almost caused a shock just like the world war. Prices started to fall at the New York Stock Exchange, restrictions were introduced for car usage, and people were encouraged to use less energy. With the start of the embargo, U.S. imports of oil from the Arab countries decreased from 1.2 million barrels a day to a mere 19,000 barrels. Daily consumption dropped by 6.1% from September to February, and by the summer of 1974, by 7 percent as the United States of America suffered its first fuel shortage since World War II. The impact of the embargo was drastic and it had an immediate effect on the whole economy. In the United States of America the retail price of a gallon of gasoline rose from a national average of 38.5 cents in May of 1973 to 55.1 cents in June of 1974. Meanwhile, The New York Stock Exchange shares lost $ 97 billion dollars in value in 6 weeks. Prices were rising since 1971 and by 1973 the price of petroleum reached the 11,68 USD/ton, this means that the prices became 10 times higher than they were originally. It could occur because of the disharmony of the consumer countries and so they could not make movements together against the embargo (for example anti-Americanism in France). Conclusion In times of shortage or oversupply crude oil prices behave much as any other commodity with wide price deflections. The crude oil price cycle may circulate over many years responding to changes in demand as well as OPEC and non-OPEC supply. From 1974 to 1978 under the control of the OPEC, the price of oil still remained high but stable: around $12 per barrel. Many developed countries started to worry about the unreliable supply sources and the exhaustion of oil reserves, but they did not do much one on this regard. The Iranian revolution in 1979 and the ensuing Iran-Iraq War lasting from 1980 to 1988 caused the second oil shock where the price of oil surged over $35 per barrel, this imposed several drastic but somewhat temporary measures to lower oil consumption. This resulted in a relocation of energy-consuming industries, in strategies for consuming less energy, such as energy efficient cars and appliances, in relying more on national energy sources like petroleum, coal, natural gas, hydroelectricity, nuclear energy, in building strategic reserves, and in substituting petroleum for other energy sources when it is possible. About 2 billion barrels are estimated to be held in strategic reserves all around the world, t he bulk of it in the United States, Germany and Japan. In 1980 the Carter Doctrine, which states that the United States would intervene militarily if its oil supply was compromised, is also the outcome of the uncertainties derived from the first and second oil shocks. The military presence of the United States in the Middle-East was extended, as the oil of the Persian Gulf was clearly perceived as of foremost significance to the national security. References http://www.people.hofstra.edu/geotrans/eng/ch5en/appl5en/ch5a1en.html http://www.wtrg.com/prices.htm Anthony Sampson. The Seven Sisters: The Great Oil Companies and the World They Shaped. New York: Viking Press, 1975

Saturday, January 18, 2020

Cardinals wholesaler case

The fraud triangle is helpful in explaining motivation for employees to fraud the company: Motive, Opportunity, and rationalization are the trigger for employees to perpetrate any company. Motive-incentive or pressure that drives an individual to commit fraud. This is caused by life pressures, illicit activities or lifestyles needs that create personal financial problems. Opportunity-a condition or situation that allows fraud to occur. Both the design and effectiveness or internal controls play a key role in this regard.Rationalization-is the attitude or mindset that enables the individual to rationalize the fraudulent act. Bill Carter- an angry, ex-employee that felt unfairly fired. Bill felt pressure from financial obligation and the need to support his family after being fired. With debts totaling $38,000 and educational expenses for his oldest son, Bill felt desperate about his financial situation and grew angrier giving him a motive to commit fraud. Bill was the purchasing depar tment manager and was aware of the weak internal control that existed in the company.He knew that there was no segregation of duties in the company because as a former manager he knew that the person who approved vendor list also approved the payment. With this in mind we can see how opportunity to commit fraud is present. His rationalization was that the company owed him for using him as a escape goat to prove their point and he also felt that a lucrative company as Cardinal would not miss a few thousand dollars. Mike Smith-had large debts, a gambling problem and a lifestyles hard to maintain.He also felt he owe his friend Bill for accepting his position after he was fired. All this together gave him the motive required to commit fraud. Now being the purchasing department supervisor he was in a position where he was capable of perpetrating the fraud because Bill had informed him that segregation of duty was not present in the company. He knew that he was the person in charge Of app roving the vendor list as well as the payment. And lastly Mike rationalization was that this was the only way for him to pay-off his debts and make a fresh start.He also felt that he could always back off the scheme after his debts were all gone. Four areas of Fraud Bill Carter had been employed for 22 years with a Fortune 500 corporation where he was the purchasing department manager. He had been married and had three children with his oldest attending an Ivy University. Unfortunately due to an indiscretion Bill was fired and was worried that his fife would find out what had happen. With only a two week severance pay he felt pressure to find a source of income to provide for his family.Consequently Bill decided to pull a vendor scheme with the help of his friend Mike Smith. As I conducted a review of the vendor list I revealed that they were six vendors suspicious of fraud. I was able to identify the six vendors because they either had a post office box address, no phone number lis ted, and they either had an invalid taxpayer identification number or were missing the number altogether. Also the invoices were created using an excel broadsheet invoice template which is a common characteristic of fictitious vendors.The search also revealed that Bill Carter created the vendor as well as opened the bank account. Unfortunately for Bill one drunken night at a bar he revealed to a stranger what he had done. Vendor scheme was created by Bill Carter and Mike Smith In a fictitious vendor scheme the fraudster establishes a shell company in this case was Trig-State company. A shell company exists on paper only but provides no goods or services to the victim organization which the organization then pays for without having receive any goods in return.This scheme is only possible when the fraudster can place the shell company in the victim's organization ‘s approved vendor list, either through poor internal controls or an inside accomplice and Bill had both. Bill had Mi ke Smith as an accomplice and was aware of the lack of internal control that exist in the company. Shell company is not a legitimate business so it has no employees, no physical location or address, no phone number and an invalid or missing tax identification number. I realized that Trig-State trucking met all of the above.Lastly the scheme is easy to perpetrate when internal controls are cake. In this case figured out that Cardinals Wholesaler did not adequately segregated job responsibilities. Detection Bill Carter receives the check, endorses and deposits the money into the bank account of Trig-State Trucking. Here Bill has unrestricted access to the fund and can spend the money any way he wants. Some red flags were found that help conclude Bill and Mike had created a fictitious vendor scheme. Trig-State Trucking had an invalid tax payer identification, a valid tax id has nine digits and Trig-State only had seven.Trig-State had no physical address and was using a post office box. The invoices were created using an excel or word invoice template. All invoices for Trig-State had an even dollar amount with no tax included. Prevention Company needs to implement stronger internal controls by segregating duties to different people. One person should place vendors on the approved vendor list, the other should prepare the payment vouchers, and the other should approve the payment vouchers. The company should performed background checks on any new vendors prior to placing them on the approved vendor list.A CAFE should be engage periodically to review the approved vendor list and look for any red flags. Identifying the fictitious vendors There are four groups of vendors. Those possessing three, two, one, or zero suspicious characteristics. The Company Cardinals Wholesaler has been a list for the company to identify any existent fraudulent vendors in the group. To take care of this task I decided to narrow down the vendor list by searching for red flags that would be evident to the data base. To do this I decided to query three data fields using the excel auto filter function.These data fields are tax payer id, address, and phone number. Using this strategy I can rank the vendors and see how many suspicious characteristics they assess. The more characteristics found the easier it is to identify a fictitious vendor without having to inspect every single invoice in the company. As finished my query was able to identify six suspicious vendors. Here are the six vendors found and the characteristic that led me to believe they are suspicious. PC One missing phone number and using a post office box as address S&B Foods, Inc. Avian a wrong tax payer number and missing phone number Stamen Floral Distributors missing phone number and using post office box as address Thresher Beverages having a wrong tax payer number ND using a post office box as address Trig-State Trucking having a wrong tax payer id number and using a post office box as address The Conne ction having no tax payer id number and missing phone number As I reviewed the six suspicious vendors I found red flags that led me to believe that Trig-State trucking had the most suspicious characteristics.Trig- State trucking listed a post office box as its address Invoice number suggested Cardinal Wholesaler was their only client Vague description of goods or services received Balance due was an even amount with out taxes or shipping address Invalid tax payer identificationNo contact information provided on the invoice Invoice was created by an excel program Canceled checks showed no evidence of typical company expenses Personal items were paid using Trig-State Trucking bank account Checks made payable to Bill Carter and Mike Smith were signed by Bill Carter There are two types of schemes that are used to perpetrate a company Pass-through and fictitious. In a Pass-through scheme is a fictitious entity created with the sole purpose of committing fraud. With this scheme the compan y receives something in exchange for payment and the loss is the amount of the profit made by the fraudster.With a fictitious scheme the company has a fabricated name with a post office box. In this scheme the company receives nothing in return from the fictitious vendor except the bogus invoice and the fraud loss is the total payment made to the vendor. As I review the files have determined that the suspicious vendor is perpetrating fictitious vendor scheme. As I review the bank Statements and the return checks noticed that the fictitious company named Trig-State Trucking is a fictitious company. The checks show that they were used to purchase personal items as well as the fact that all the checks were sign byBill Carter the person who created the fictitious company. As I check the bank statements can also see that the vendor on this account is also Trig-State company which is using a post office box. And lastly, the checks that are made for Bill Carter and Mike Smith are signed by Bill Carter which give the indication that these are the payment they are getting for the bogus invoices they have created. To prevent a fictitious scheme from occurring Research shows 93% of all fraud schemes involves cash. The prevention of fraud in the future depends on the development of adequate controls and procedures.Here are some recommendation to prevent this type of fraud in the future. Background checks should be performed on all new vendors Verify receipts of items/services before paying vendor invoices Segregate the duties of approving vendors and vendor payments A review of canceled checks and bank statements by a third person Periodic review of the approved vendor list for any red flags Company needs to implement a stronger system of internal controls Bill Carter, an angry, terminated employee and Mike Smith, Carter's replacement joint together to perpetrate a fictitious vendor scheme against Cardinals Wholesaler.The scheme lasted five years were each perpetrator poc keted about $900,000. Cardinals Wholesaler was perpetrated when Bill Carter was fired and his friend Mike Smith became his replacement. Feeling loss and with no income Ben decided that all he needed was to create a fictitious vendor to scheme the company. Bill knew that to pull this off he needed an accomplice. This is when he brought Mike Smith who accepted the proposal due to his large debts and gambling problems. They created a shell company where the company is trick into paying vendor invoices for which it receives nothing in return.I believe it happened because Ben Carter was humiliated after being fired after 22 years of service. He felt it was unfair and as a payback he decided to setup a fraud to get back what he thought was owed to him. Bill Carter and Mike Smith plan the fraud to last enough for Bill to get back on his feet and for Mike to pay off his debts but after a while they noticed how well they were doing and how they were getting away with it. If it wasn't for Car ter's excessive drinking one night the scheme might have never been caught. I believe that what cause this to happen was how Bill was fired.

Thursday, January 9, 2020

Notre Dame Mba Essay Samples - Is it a Scam?

Notre Dame Mba Essay Samples - Is it a Scam? With the increase in internet and communications technology, the world wide web is currently an excellent place to communicate with people and make social networks. You can always read more regarding the explanations for doing an Online MBAhere. If you're contemplating acquiring a master of business administration degree, the world wide web has a number of options for you. Obtaining an education online is growing increasingly popular as it's a handy and adaptable type of learning. A professionally qualified MBA graduate can aid the enterprise to meet with the business targets. Studies demonstrate that the typical salaries for MBA professionals have risen above 21% in the previous seven decades. Your student page comprises reports that you are able to refer to and print out such as a schedule of all the classes you want to finish your MBA through UOP online. The state MBA program might be too traditional and not accelerated enoug h for your requirements. Finding an online MBA degree can reap many positive aspects, and could possibly be the tool you have to have in furthering your organization career. He may be the best way to allow you to continue your job and earn the degree at the same time. Getting your MBA online is also great if you're a working parent, yet want to further your organization education. Finding an MBA degree on the internet is most likely one of the most practical decisions you will make. Additionally, numerous search services online will give you the facility to locate MBA scholarships. The only thing you ought to be aware is there are several fake degree programs around, you have to be careful while searching for an online MBA program. While there are many varieties of MBA Programs to pick from the predominant decision is between several types. You're able to sift through online MBA courses and find one which meets your requirements and doesn't have residency requirements or you're able to examine the course offerings of local universities and see whether they provide online MBA programs. On-line degree programs which don't take a technical degree are the ideal alternative for the majority of people. There are unaccredited universities that provide high quality and recognized courses but for the large part unaccredited universities ought to be avoided. The yearly best online school award may be a very good indicator to get the best online MBA program. By participating in an online MBA course, you do not need to attend classes at a genuine university. Many internet MBAs need residential schools. Together with the popularity of on-line education, an increasing number of universities make their MBA program available online. The Birth of Notre Dame Mba Essay Samples Students are going to have the opportunity to apply distinctive instruments and concepts towards achieving this, in addition to analyzing a number of alternate solutions to common problems in management. They will select a course of action for solving situations, and then defend their choice. Then these students will require a financial aid. Nearly all students have many years of corporate or military experience. A significant consideration with respect to picking a suitable online MBA course is that of accreditation. Enrolling in an internet program doesn't signify you're going to be studying alone. The last decision regarding an online MBA program ought to be geared towards careful consideration of all facets of the program and likewise an honest assessment of what you are prepared to do in order to be successful. The application procedure is different from school to school, too. Such kinds of scholarships are offered for both financial guidance and academic accomplishment. Some scholarships need periodical renewal. Universities are continuously attempting to assess fit in the exact way their applicants are. Some universities charge an on-line shipping fee, along with tuition and registration fees. The Dirty Truth on Notre Dame Mba Essay Samples Normally the school will have someone who you may speak to, who can aid you with funding options, should you need one or more of these options. Any working professional can receive a degree without giving up her or his full-time job. In the current competitive international market an MBA on your resume will grant you the edge required to secure a rewarding position within the general public or private sector. The absolute most important step is to use the knowledge gained in your existing place of employment or whether you're seeking new employment during the interview stage.

Wednesday, January 1, 2020

A Sonnet Lyric Poem - 844 Words

A sonnet is described as a short lyric poem. But before well known sonnets of such poets like Shakespeare, the word sonnet used to simply mean little song. Over the centuries there have been different types of sonnets. Some of the most known sonnets are the types labeled as the English (Shakespearean), Italian, and Occitan Sonnet. One of the most modern types of sonnets is known as Free Form. Most sonnets will follow its conventional form. This poem will consist of 14 lines with iambic pentameter, which is an unstressed syllable that is followed by a stressed syllable. It will also have a certain rhythmic pattern that will follow throughout the poem. The subject of the poem is about love, desire, or unrequited love. A poem which is†¦show more content†¦But yet, I believe we all see different. I truly believe that the intention of a poet is to have the reader follow a certain direction and let their minds think for themselves at which to direction to lead at the end. Hoping o n their way they will end up with the same type of feeling the poet wants a reader to feel. Whether it is sadness, love, or anger, I believe a poet’s goal is to have their reader’s mind explore feelings that have not been felt before, which can make a difference in their life. Exploring different views and maybe changing one’s opinions can change so much in this world. We have gone through so much prejudice in this country even though it is it still exists today. What made it become less and less is the voices that we have heard on the television, the books we have read, and the history that has been passed down every generation. Poetry is just another form of passing down a message that may change itShow MoreRelatedOn His Blindness by: John Milton (1655)1102 Words   |  5 Pages experiences, and imagines†. Poems are built around human life experiences but written in concise and expressive figurative language form which could sometimes be difficult to u nderstand. 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