Capital Investment Appraisal Essay Example | Topics and Well Written Essays - 750 words

Capital Investment Appraisal - Essay Example In applied capital budgeting, however, the fundamental concept of managerial flexibility, or active project management, has been well accepted and long practiced. In the past, one way decision-makers have attempted to supplement a traditional analysis is with "what if" analyses, such as sensitivity analyses, scenario analyses, and simulation. However, richer and more efficient capital budgeting decision-making frameworks are needed; and they should directly translate into increased corporate effectiveness, profitability, and long-term survival in today's globally competitive marketplace. (Black 637-354) The primary enhanced decision-making framework is a "real option" analysis. During the last fifteen years, increasing attention has been given to the "real option" approach to capital investment decision-making. "Real options ... allow managers to add value to their firm, by acting to amplify good fortune or to mitigate loss". When real options are present, the traditional DCF methodology may fail to provide an adequate decision-making framework because it does not properly value management's ability to wait, to revise the initial operating strategy if future events turn out to be different from originally predicted, or to account for future (dis)investment. (Trigeorgis 202-224; Fabozzi 7-9; Grinblatt 9-15) Thus, calculating the value of the decision rights of managers to actively manage investment opportunities is not simply a matter of discounting. In addition, since management is not committed to revising the firm's investment strategy or undertaking these future discretionary op portunities, the right to do so is truly an option. That is, managers undertake these opportunities only if and when they chose to do so. In practice, capital investments are determined by managerial discretion where the available options to invest in real assets is evaluated on an on-going basis and either exercised, deferred, or allowed to expire. An option-based approach is, therefore, an excellent representation of the managerial decision-making process. To be simple the internal capabilities of a firm must be matched to its external opportunities in order for managers to maximize shareholders' wealth. The real options are characterized by the flexibility they offer in timing of decisions involving the capabilities and opportunities of the firm (Walters and Giles 1-7; Ross 96-102; Chung 1215-1221; Copeland 15-22). The true NPV of a project can be viewed as the sum of the traditional NPV and the values of inherent real options: True NPV = Traditional NPV + NPV of Real Options. To clarify the value of options from active management, suppose that a firm considers producing a new product, which requires an initial outlay of $1 million. The capacity of the production facility over one period would be 40,000 units. The variable cost of producing one unit of this product is $390. The price of the product in one period from now would be either $300 or $500 with an estimated probability of 50 percent for each state of the nature. The appropriate discount rate for the project is 15 percent. The expected cash flow from the project after one period woul

World Heritage Sites Essay Example | Topics and Well Written Essays - 1500 words

World Heritage Sites - Essay Example In most cases the places that have been highlighted as world heritage sites usually have a special physical appearance or culture that is associated with it. The places are usually designated as those that have a special significance to humanity. The selection process of these places is usually a rather complicated one majorly due to the fact that there are several places that may all be proposed for inscription as a world heritage site. The body that elects those sites that are to be listed as the world heritage sites is the United Nations General Assembly. At the same time the list of all the heritage sites of the world is maintained by the International World Heritage Programme which is under the UNESCO. There are certain special conditions under which these sites may receive funds say for maintenance and upgrade from the World Heritage Fund kitty. There are certain countries that have had the chance to have several sites listed. An perfect example in this case happens to be Italy . It is to be noted that the country has close to 47 sites that have been inscribed as world heritage sites.... It is to be appreciated that as a result of the world heritage sites program there are some countries that have benefitted tremendously as a result of this .The main reason for this is because these sites automatically become tourist sites. Over the years these sites have always attracted large numbers of people who are marveled by the features they entail or at the same time there are those that visit the sites with the intention of getting to know more about them. The nomination process that has been set forth is quite a rigorous one especially for the country that wants some of its sites to be listed therein. For starters the country in question must first take an inventory of all its natural properties and cultures which it perceives to be of importance. In actual sense this is called coming up with the Tentative List. After this is done then the nomination process begins. It is to be noted that a country is not supposed to nominate a site or culture that is not in the Tentative List. After this is done those sites that have been selected are then to be placed in the Nomination File. After this is done there are bodies that evaluate the file and make their recommendations to the World Heritage Committee. These bodies include the World Conservation Union and The International Council of Monuments and Sites. The Heritage committee then meets once a year and this is the time when it makes the decision of whether to inscribe particular sites or not. Preservation and Development It may be asked that who owns the site once it has been inscribed as a world heritage site. In actual sense it is the property of the country that it is

Business Analysis Of LOréal

Business Analysis Of LOrà ©al LOreal is the worlds largest French based cosmetic company which is running successfully and globally in Northern America, Western Europe, Latin America, Eastern Europe, Asia, Africa, Orient, Pacific and some other countries for the marketing business. Later, in Africa. They also offer the best for all the consumer beauty in many distribution channels like ( In Hair Salons, In Mass Market Outlets, In Perfumes and Department Stores, Through Pharmacies and Dermatologistics and In The Body Shop Stores as well). Cosmetics group is being able to focus in prices, for all the lifestyle, in many different regions globally. They are wondering that what is going to happen to their products from the same company which might take a huge turn over to complete or compitet against them. They also marked there 100 years would be defined with 100 different projects to give them a good support with their citizen projects and would involve the employers all over the world in a tangible and effective way. They also made a calculation reduction for their goals during (2005-2015). There Goals is to achieve 50% through the greenhouse gas emission 50% with the waste generations per finished products and 50% of water consumption per finished products. As LOreal is more considered into Making the World Beauty Universally for everyone in this whole world. INTRODUCTION LOreal company was invented in (1907) by Eugene Schueller the young French Chemist, who took a first move by creating the first hair dyes and started his sales by selling them to the French hairdressers. This move made him focus and concentrate on researching, starting for his investment to achieve the beauty for consumers and to look forward with the name LOreal. LOreal is a listed company, as Liliane Bettencourt and the Swiss food company Nestle are the founders as each of them are controlling 30% (percent) of the shares. In (1988-2000) the director and the chairman Lindsay Owen-Jones in (2006) started the company with the cosmetic marketing. Therefore today LOreal is the 1st Cosmetic group worldwide it has 27 International brands which is running globally in almost 130 Countries with à ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ã‚ ¬20.3 Billion Euros with more than 68,900 Employees. LOreal company has a setup of 5 key division and activities which is related with LOreal LUXE, CONSUMER Products, PROFESSIONAL Products, ACTIVE Cosmetics and The BODY SHOP. There are some products which contains the highest growth rates like LancÃÆ' ´me, Giorgio Armani, Kiehls, Kerastase, Maybelline New York and La Roche-Posay contains a range of exceptionally high quality products that are globally recognized all over the world. Therefore, this success accomplished under his leadership Sir Lindsay who have recognized to help the consumers individually by desiring them or getting them to be beautiful, his mission was to achieve to create the effective growth strategy for their brands in order for companies success. PESTEL Analysis It stands for Political, Economic, Social, Technological, Environmental and Legal analysis. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. Political factors The political challenges is that LOreal must try to change all the political leadership styles in many different countries where they are operating it with. Or how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide. Also, LOreal is getting effected by the legislation for advertising (demerit goods or merit bads). LOreal is producing almost all the safe products which doesnt contain any harmful substance or any kind of effectiveness. Furthermore, governments have great influence on the health, education, and infrastructure of a nation. Economic factors include economic growth, interest rates, exchange rates and the inflation rate in all the countries which they are operating in. For example in (2004), LOreal was been affected by the continues weakness of the dollar and other currencies. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firms cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. Social factors Because LOreals business in exactly at the centre of the people all over. It is closely involved in the life of the communities where they are located and it also includes the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a companys products and how that company operates. Technological factors It includes the ecological and environmental aspects, such as RD activity, automation, technology incentives and the rate of technological change. (Eugene Schelleur) who founded the scientist researches. LOreal has embraced the technological innovation in many ways. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Environmental factors The main factor includes weather, climate, and climate change, which is especially affects the industries such as tourism, farming, and insurance. Furthermore, growing awareness to climate change is affecting how companies operate and the products they offerit is both creating new markets and diminishing or destroying existing ones. Legal factors That include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. PORTER FIVE FORCES It exists with the intensity of the following Rivalries, Threat of Substitutes, Threat of new competitors, Bargaining power of Suppliers, and Bargaining power of Customers. It is essential to understand the many different risk and rewards of an industry. Bargaining Power of Suppliers (Internal) Suppliers is the business that supply materials and other products into the industry .if suppliers have a high range of bargaining power then the company gets less attraction. It has a high power when many buyers and few dominators supply not differentiated. High valued products (Switching cost Substitute products are unavailable in the market place. For Example: Raw Materials Packaging Point of Sales Equipments So that mean LOreal has many suppliers in producing their products. So therefore, their bargaining power is low. Bargaining Power of Customers (Internal) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product. Inelastic demand positively affects LOreal Paris. When there are large numbers of customers, no one customer tends to have bargaining leverage. Limited bargaining leverage helps LOreal Paris. Intensity of Existing Rivalry (External) Government policies and regulations can dictate the level of competition within the industry and will have a long term negative impact on this entity, which subtracts from the entity value. Threat of Substitutes (External) Threat for substitute products refer to produce in other industries. It exists when a product demand is affected by the price change of a substitute product there are number of chemicals in shampoo and other bath and body products which is frightening. As essentially, whatever toxics to put or use in your mouth toxics on your skin as well. Threat of New Competitors (External) The important entry is for the Barriers quality, pricing and marketing which can overcome with the barriers in many different ways. Also new firms sometimes is easy to enter the industries because of high-quality products, lower price and substantial marketing resources. LOreals main competitors are the cover girls, Avon, Revlon etc. The main Threats for LOreal is their products are luxuries which could be hurt by an economic downturn however they are able to be global and act locally. Also it may affect their distribution system. VIRIN Analysis It stands for Valuable, Rare, Inimitable and Non-substitutable LOreal corporate reputation is a type of retailing which enables a brand KIELHS and THE BODY SHOP which are the free standing store and developing. This is an invaluable way of getting the consumers by measuring the success of products and advertising them in a real time. In LOreal rare is an auto regenerating flower which is known as Haberlea Rhodopensis which is global anti ageing skincare that produces to protect and revitalise the skin. SWOT Analysis The word SWOT is an acronym meaning: S Strengths W Weakness O Opportunities T Threats The main act of SWOT analysis is that The importance of performing a SWOT analysis is that, no business should take a high risk strategy if there are any significant weaknesses foreseen. Performing a SWOT analysis may consider in, What are the weak/strong products, divisions, attitudes etc.? Are there any gaps/opportunities? Are we strong in the right way to exploit the opportunity? Considering the above facts a SWOT analysis has taken place to mark the right opportunity. Strengths: Generally high profit margins Well known worldwide High RD skills in Headquarters Product Innovation Consistent quality Workplace safety and environmental concern (image) Local product production and loyal customers Online growth Weakness: Bad communication High Failure rate of new cosmetics Low profit margins may be subject to seasonal variations such as (Valentines, Mothers Day and Christmas). Opportunities: Acquisitions natural product awareness. High quality products will become prevalent. Financial markets (raise money through debt, etc) Emerging new market segments and expansion abroad. Product and services expansion Asian, African and South American markets are growing. Threats: High competition from foreign brands. Low cost of switching may encourage consumers to trail new products. Economic downturn has a result in the reduction of spending on luxury goods. Conclusion Based on this analysis LOreal is trying to focus on the photonics to enhance the cosmetics colours, with the shop shelves where there are trying to show the world as the first cosmetic. LOreal sales margin in yearly bases is more than 4.6 billion individually as ever purchase of any consumers choice product like ( beauty salon ). This is the main reason why the consumer are satisfied and look forward to their products. Là ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢Oreal seems to give it competitive advantage over its rivals. They are a dominant player in the market and probably the leading seller of the beauty products. They also have many opportunities to open them and they should also take advantage of their strengths in the market they operate with. In short, the main fact behind their success is to reach out to the consumers with many different countries of the global by different cultural patterns and different income ranges. That is the main reason behind their success of brand LOreal.

Creative Solution to the Energy Crisis Essay -- Methane Digestion Cow

Creative Solution to the Energy Crisis Picture yourself driving along the winding country roads in central Vermont, it is early fall, your windows are open and Joni Mitchell is gracing the airwaves with her soulful melodies. You are at one with the world, you take a deep breath, inhaling the crisp autumn air and then it hits you- the smell. At first it’s just a whiff, a hint of something sour. In no time you’re rolling up your window as full on nausea engulfs you. Twenty four hours a day, seven days a week, fifty two weeks a year there is one certainty: cow shit. The more tasteful term is manure, but for all of those in the world who live in areas with more bovine citizens than human ones, the smell merits no such enlightened vocabulary. Incredibly, some innovative minds have begun putting bad smells to good use. Cow power is a new undertaking of Central Vermont Public Service (CVPS) and has been gaining popularity as a way to create electricity and supplemental incomes for dairy farmers in Vermont. Th ere are methane digestion initiatives similar to the one in Vermont being instituted all over the country. The adaptability of the methane digestion process makes methane digestion a viable option for producing electricity with low environmental impacts. Methane digestion is not a new technology; it was first implemented in India in 1859 and has recently begun to gain popularity among farmers in the US due to rising energy costs but still remains a largely unknown energy source (Gardner 2006). The science behind creating electricity from cow manure takes advantage of the natural gasses which are produced by the digestion of manure by bacteria. First the manure is collected (usually by a mechanical floor scrapp... ...s. Methane digestion is one of the only methods of energy production that utilizes the waste of human activities. It appears to be an obvious solution to many problems. Using animal manure to power our lights and appliances reduces the output of concentrated amounts of waste into the environment, eliminates unpleasant odors and reduces the need for fossil fuels on farms-everyone wins. However, the financial stumbling block that has tripped up so many farmers must be surmounted in the future if methane digestion is to become a prevalent source of electricity. Perhaps as the strain on our available energy sources continues to intensify more unorthodox methods for energy production will become more worthy of government support. Methane digestion, with its unique advantages, is bound to be one of the most successful alternatives to current energy production. Creative Solution to the Energy Crisis Essay -- Methane Digestion Cow Creative Solution to the Energy Crisis Picture yourself driving along the winding country roads in central Vermont, it is early fall, your windows are open and Joni Mitchell is gracing the airwaves with her soulful melodies. You are at one with the world, you take a deep breath, inhaling the crisp autumn air and then it hits you- the smell. At first it’s just a whiff, a hint of something sour. In no time you’re rolling up your window as full on nausea engulfs you. Twenty four hours a day, seven days a week, fifty two weeks a year there is one certainty: cow shit. The more tasteful term is manure, but for all of those in the world who live in areas with more bovine citizens than human ones, the smell merits no such enlightened vocabulary. Incredibly, some innovative minds have begun putting bad smells to good use. Cow power is a new undertaking of Central Vermont Public Service (CVPS) and has been gaining popularity as a way to create electricity and supplemental incomes for dairy farmers in Vermont. Th ere are methane digestion initiatives similar to the one in Vermont being instituted all over the country. The adaptability of the methane digestion process makes methane digestion a viable option for producing electricity with low environmental impacts. Methane digestion is not a new technology; it was first implemented in India in 1859 and has recently begun to gain popularity among farmers in the US due to rising energy costs but still remains a largely unknown energy source (Gardner 2006). The science behind creating electricity from cow manure takes advantage of the natural gasses which are produced by the digestion of manure by bacteria. First the manure is collected (usually by a mechanical floor scrapp... ...s. Methane digestion is one of the only methods of energy production that utilizes the waste of human activities. It appears to be an obvious solution to many problems. Using animal manure to power our lights and appliances reduces the output of concentrated amounts of waste into the environment, eliminates unpleasant odors and reduces the need for fossil fuels on farms-everyone wins. However, the financial stumbling block that has tripped up so many farmers must be surmounted in the future if methane digestion is to become a prevalent source of electricity. Perhaps as the strain on our available energy sources continues to intensify more unorthodox methods for energy production will become more worthy of government support. Methane digestion, with its unique advantages, is bound to be one of the most successful alternatives to current energy production. Creative Solution to the Energy Crisis Essay -- Methane Digestion Cow Creative Solution to the Energy Crisis Picture yourself driving along the winding country roads in central Vermont, it is early fall, your windows are open and Joni Mitchell is gracing the airwaves with her soulful melodies. You are at one with the world, you take a deep breath, inhaling the crisp autumn air and then it hits you- the smell. At first it’s just a whiff, a hint of something sour. In no time you’re rolling up your window as full on nausea engulfs you. Twenty four hours a day, seven days a week, fifty two weeks a year there is one certainty: cow shit. The more tasteful term is manure, but for all of those in the world who live in areas with more bovine citizens than human ones, the smell merits no such enlightened vocabulary. Incredibly, some innovative minds have begun putting bad smells to good use. Cow power is a new undertaking of Central Vermont Public Service (CVPS) and has been gaining popularity as a way to create electricity and supplemental incomes for dairy farmers in Vermont. Th ere are methane digestion initiatives similar to the one in Vermont being instituted all over the country. The adaptability of the methane digestion process makes methane digestion a viable option for producing electricity with low environmental impacts. Methane digestion is not a new technology; it was first implemented in India in 1859 and has recently begun to gain popularity among farmers in the US due to rising energy costs but still remains a largely unknown energy source (Gardner 2006). The science behind creating electricity from cow manure takes advantage of the natural gasses which are produced by the digestion of manure by bacteria. First the manure is collected (usually by a mechanical floor scrapp... ...s. Methane digestion is one of the only methods of energy production that utilizes the waste of human activities. It appears to be an obvious solution to many problems. Using animal manure to power our lights and appliances reduces the output of concentrated amounts of waste into the environment, eliminates unpleasant odors and reduces the need for fossil fuels on farms-everyone wins. However, the financial stumbling block that has tripped up so many farmers must be surmounted in the future if methane digestion is to become a prevalent source of electricity. Perhaps as the strain on our available energy sources continues to intensify more unorthodox methods for energy production will become more worthy of government support. Methane digestion, with its unique advantages, is bound to be one of the most successful alternatives to current energy production.

Diversity in Survey Methods Essay

Introduction Before describing the implication of diversity in doing research, it is important to note that any research should be as specific as possible. For example, suppose the researcher intends to evaluate or find out whether women experience more automobile accidents than men, then the researcher should specify the variables to be used. Too many variables may make the study too general and invalid. One researcher may opt to approach this research by comparing women and men in terms of how easily they get distracted   and the number of accidents they face either gender. Another researcher may opt to just approach this research by analyzing accident   cases and counting which of the cases is caused by women and which is caused by men. The two researchers would have different survey questions. The first researcher will have a relatively diverse survey questions because he or she is considering two variables, whereas the latter researcher will have homogenous survey questions (Jackson, 2012).   When the variable survey questions are diverse, the significance and mean of the variables may be skewed to the right or left depending on the degree of diversity. If some of the values in the variables are extremely low, then the mean would be lower than the median and hence the results will be skewed to the right. Alternatively, if the diversity is made up of variables that are extremely high in value, then the mean will be more than the median and the results will be skewed to the left. Skewness may distort the true meaning of the results (Jackson, 2012). Consequently, the researcher needs to take into account a number of aspects. The first aspect is outliers. The researcher should remove any outlier as possible because it is the outliers that are responsible for the shift of the results (Jackson, 2012). In addition, the researcher should make the survey questions relatively specific. References Jackson, S. L. (2012).  Research methods and statistics: A critical thinking approach. Belmont, CA: Wadsworth Cengage Learning.

Free software Essay

The freedom to run the program, for any purpose (freedom 0). The freedom to study how the program works, and change it so it does your computing as you wish (freedom 1). Access to the source code is a precondition for this. The freedom to redistribute copies so you can help your neighbor (freedom 2). The freedom to distribute copies of your modified versions to others (freedom 3). By doing this you can give the whole community a chance to benefit from your changes. Access to the source code is a precondition for this You are free to (1)study it, (2)redistribute it, and (3) modify it. 2. Why is Linux popular? Why is it popular in academia? Bell Labs offered it to educational institutions at nominal cost. The schools, in turn, used it in their computer science programs, ensuring that computer science students became familiar with it. Because UNIX was such an advanced development system, the students became acclimated to a sophisticated programming environment. As these students graduated and went into industry, they expected to work in a similarly advanced environment. As more of them worked their way up the ladder in the commercial world, the UNIX operating system found its way into industry The source code for the operating system is readily available so that students can understand more easily how GNU/Linux works and can modify the code further to understand its operation and change the way it works. 3. What are multiuser systems? Why are they successful? Sharing the computer’s power among many users and giving them the ability to share data and programs are central features of the system. a multiuser operating system allows many people to use all of the system resources almost simultaneously The use of costly resources can be maximized and the cost per user can be minimized—the primary objectives of a multiuser operating system. 4. What is the Free Software Foundation/GNU? What is Linux? Which parts of the Linux operating system did each provide? Who else has helped build and refine this operating system? The Free Software Foundation (www. fsf. org) is the principal organizational sponsor of the GNU Project. GNU developed many of the tools, including the C compiler, that are part of the GNU/Linux Operating System Linux is the name of an operating system kernel developed by Linus Torvalds and expanded and improved by thousands of people on the Internet. Torvalds’s kernel and GNU’s tools work together as the GNU/Linux Operating System 5. In which language is Linux written? What does the language have to do with the success of Linux? 95% is written in C. Because Linux is portable, it can be adapted (ported) to different machines and can meet special requirements. For example, Linux is used in embedded computers, such as the ones found in cellphones, PDAs, and the cable boxes on top of many 10 Chapter 1 Welcome to Linux and Mac OS X TVs. The file structure takes full advantage of large, fast hard disks. Equally important, Linux was originally designed as a multiuser operating system—it was not modified to serve several users as an afterthought. Sharing the computer’s power among many users and giving them the ability to share data and programs are central features of the system 6. What is a utility program? otften reffered to as â€Å"commands† These utilities perform functions that are universally required by users. The sort utility, for example, puts lists (or groups of lists) in alphabetical or numerical order and can be used to sort lists by part number, last name, city, ZIP code, telephone number, age, size, cost, and so forth. A utility (program), sometimes referred to as a command, is a program that performs a task that is frequently related to the operating system. A utility is simpler than an application program although there is no clear line separating the two 7. What is a shell? How does it work with the kernel? With the user? In a textual environment, the shell—the command interpreter—acts as an interface between you and the operating system. its the link between user and kernal to tell it what to do. or view what the kernal is doing. its the command line interface that accepts input from the user. 8. How can you use utility programs and a shell to create your own applications? Write a shell script, also called a shell program, or a batch file under DOS. A shell script is one or more command lines contained in a file. Make the file executable and give the name of the file as a command: The shell executes the commands in the file, as though you had typed each command individually 9. Why is the Linux filesystem referred to as hierarchical? The Linux filesystem provides a structure whereby files are arranged under directories, which are like folders or boxes. Each directory has a name and can hold other files and directories. Directories, in turn, are arranged under other directories, and so forth, in a treelike organization. This structure helps users keep track of large numbers of files by grouping related files in directories. Each user has one primary directory and as many subdirectories as required 10. What is the difference between a multiprocessor and a multiprocessing system? multi processor is a computer that has more than one processor (processing units) and multiprocessing system is the fact that it can process multiple tasks at the same time Multiprocessing is the use of more than one CPU in a computer system 11. Give an example of when you would want to use a multiprocessing system. Multiprocessing is the use of more than one CPU in a computer system so when you have more than one CPU you can take advantage of it. Multiprocessing sometimes refers to the execution of multiple concurrent software processes in a system as opposed to a single process at any one instant 12. Approximately how many people wrote Linux? Why is this project unique? The Linux kernel was developed by Finnish undergraduate student Linus Torvalds The Linux operating system, which was developed through the cooperation of many, many people around the world, is a product of the Internet and is a free 13. What are the key terms of the GNU General Public License? The GPL says you have the right to copy, modify, and redistribute the code covered by the agreement When you redistribute the code, however, you must also distribute the same license with the code, thereby making the code and the license inseparable.