The Capital Structure Model Essay

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Before choosing a financing method for the company the capital structure must be considered to ensure that after the investment the company is able to remain solvent. Capital structure is determined by the mixture of long-term debt and equity used by the firm to finance its operations. A company’s capital structure is analyzed together with its cost of capital while considering various types of financial plans to be pursued by the company.

Capital structure determines the Valuation of a company using its cost of common capital. Valuation is concerned with the determination of the value of the company. The value of a firm is important not only to its existing and prospective shareholders but also quite useful when a firm is considering acquiring or merging with another firm as well as obtaining capital.

A capital structure consists of two sources of funds and has certain characteristic differences. These sources are simplified as debt and equity although can be broken into various long-term financing into its debt and equity components including stockholders’ equity, preferred stock, common stock retained earnings, and long-term debts.

  • Debt capital includes any type of long-term funds obtained by borrowing. There are various types of long-term debt. It can be secured or unsecured, senior or subordinated, raised by the sale of bonds, or through a negotiated long-term loan. Many large manufacturing firms have more than one type of debt on their books. Probably the most common type of long–term debt instrument is the corporate bond.
  • Equity capital consists of the long-term funds provided by the firm’s owners. Unlike borrowed funds that must be repaid at a specified date, equity capital is expected to remain in the firm for an infinite period of time. The three basic sources of equity capital to the firm are preferred stock, common stock, and equity capital differs. Common stock is typically the most expensive.

The capital structure of the company shows how much of the company assets are financed by the company through debt and how much from equity. The company while trying to source for funds must consider the optimal cost that will not affect the capital to structure further each source of capital has its own cost of capital and its effect on the long term sustainability of the firm there are a few constraints that the firm uses in determining the firm capital that will be chosen. The most important aspect is the gearing aspect.

Gearing is an important concept in connection with capital structure. Gearing is said to exist wherever a company is financed partly by debt. The more debt there is, the more highly geared is the company. Debt creates a fixed annual charge against profits in the form of interest payments. This causes a magnification of any fluctuations in the residual profits available to equity holders, i.e. they become riskier. This increase in risk due to gearing is known as financial risk. it is to be distinguished from the commercial risk to which any business, however, financed, is subject.

There are two opposing theories of capital structure and its relationship to the cost of capital. The first of these, the traditional theory, says that, since debt is cheaper than equity, it will pay initially it increases the amount of debt financing used. At some critical point, financial risk will begin to impinge on the cost of equity it will be disadvantageous to expand it further. There is thus a minimum cost combination of debt and equity which should be sought.

The second theory is associated with the names of Modigliani and Miller and asserts that the cost of capital relates to the value of the business as an economic entity and is independent of the method of finance. This theory would imply that the financial manager had no important decision to make regarding capital structure. A company may sometimes find it desirable to reorganize its capital structure. The ways in which this may be done should be noted.

The current capital structure of the company

The table below shows that company reliance on creditor financing is very high and has been fluctuating from 2000 to 2003. At the same time company is building equity finance during the same four years. This increase in equity finance came mostly from an increase in retained earnings of the company. The company paid no dividend to its outside shareholders. Instead, it has decided to reinvest its annual profit into the business instead of relying on outside financing. The decrease in total liabilities seems to be due to an equal decrease in the current liabilities of the company. This decrease in current liabilities of the company, therefore, results in improved current and acid test ratio for the year 2002. The interest coverage ratio is improving.

Long term debt and solvency ratio200020012002June 2003
Total debt
Total assets
168505x 100
344128
=48.97%
356358x 100
673773
=52.89%
745340x 100
1378923
=54.05%
832798x 100
1565322
= 53.20%
Long term
equity
161910x 100
109399
=1.5:1
345650x 100
178274
=1.9:1
690252x 100
414673
=1.7:1
731740x 100
480594
= 1.5:1

coverage ratio

Earnings before interest and taxes
Interest expense
(21569)
381
-56.6 times
26807
3598
7.45 times
104987
10730
= 9.78 times
79997
7255
11.03 times

Financing option 1- equity offering

Long term debt and solvency ratio2003
Total debt
Total assets
832798x 100
1675822
= 49.70%
Long term
equity
731740
591094
=1.2:1

Financing option 1- debenture offering

Long term debt and solvency ratio2003
Total debt
Total assets
943298x 100
1675822
= 56.29%
Long term
equity
842240x 100
480594
=1.75:1

I will advise the board to go for option 1 which reduces the reliance on debt capital which is currently on the highest. Financing option 1 will reduce reliance on debt capital which will reduce the risk of bankruptcy or insolvency of the firm. currently, the firm relies on debt to finance its operations. This needs to be reduced to a level but is acceptable by the creditors. An increase in debt will create problems of insolvency and the long-term survival of the firm.

The firm has a more equity capital structure and they want to raise more capital they should consider debt capital so as to reduce the weighted average cost of capital. The current capital structure seems to be very expensive for the firm as they are less equity capital.

  • Ghetti A., Terrific introduction to financial management; Amazon, 2008 pg218-223
  • Gitman L.J., Principles of Managerial Finance ,1990,Harper and Bow pp.336-350
  • Mclaney E. Business Finance Theory And Practice ,2003, Prentice Hall, pp.290-305
  • Schlosser M., Business Finance Application , Models And Cases, Prentice hall, 2002,pp. 144-146
  • FDI Investments in Japan and Ireland
  • Investing in Babushka’s Baubles Plc.
  • How Liquidity and Solvency Affect Company Abilities
  • John Pierpont Morgan: The Man Who Financed America
  • Financial Analysis of J Sainsbury PLC and Wm Morrison Supermarkets PLC
  • Ukaymatt Supermarket's Financial Management
  • Enron Fall: Biggest Corporation in America Bankruption
  • Auction-Based Initial Public Offering
  • Strategic Corporate Finance in Business
  • The Issues of Financing Small Businesses
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17.1 The Concept of Capital Structure

By the end of this section, you will be able to:

  • Distinguish between the two major sources of capital appearing on a balance sheet.
  • Explain why there is a cost of capital.
  • Calculate the weights in a company’s capital structure.

The Basic Balance Sheet

In order to produce and sell its products or services, a company needs assets. If a firm will produce shirts, for example, it will need equipment such as sewing machines, cutting boards, irons, and a building in which to store its equipment. The company will also need some raw materials such as fabric, buttons, and thread. These items the company needs to conduct its operations are assets . They appear on the left-hand side of the balance sheet.

The company has to pay for these assets. The sources of the money the company uses to pay for these assets appear on the right-hand side of the balance sheet. The company’s sources of financing represent its capital . There are two broad types of capital: debt (or borrowing) and equity (or ownership).

Figure 17.2 is a representation of a basic balance sheet. Remember that the two sides of the balance sheet must be Assets = Liabilities  +   Equity Assets = Liabilities  +   Equity . Companies typically finance their assets through equity (selling ownership shares to stockholders) and debt (borrowing money from lenders). The debt that a firm uses is often referred to as financial leverage . The relative proportions of debt and equity that a firm uses in financing its assets is referred to as its capital structure .

Attracting Capital

When a company raises money from investors, those investors forgo the opportunity to invest that money elsewhere. In economics terms, there is an opportunity cost to those who buy a company’s bonds or stock.

Suppose, for example, that you have $5,000, and you purchase Tesla stock. You could have purchased Apple stock or Disney stock instead. There were many other options, but once you chose Tesla stock, you no longer had the money available for the other options. You would only purchase Tesla stock if you thought that you would receive a return as large as you would have for the same level of risk on the other investments.

From Tesla’s perspective, this means that the company can only attract your capital if it offers an expected return high enough for you to choose it as the company that will use your money. Providing a return equal to what potential investors could expect to earn elsewhere for a similar risk is the cost a company bears in exchange for obtaining funds from investors. Just as a firm must consider the costs of electricity, raw materials, and wages when it calculates the costs of doing business, it must also consider the cost of attracting capital so that it can purchase its assets.

Weights in the Capital Structure

Most companies have multiple sources of capital. The firm’s overall cost of capital is a weighted average of its debt and equity costs of capital. The average of a firm’s debt and equity costs of capital, weighted by the fractions of the firm’s value that correspond to debt and equity, is known as the weighted average cost of capital (WACC) .

The weights in the WACC are the proportions of debt and equity used in the firm’s capital structure. If, for example, a company is financed 25% by debt and 75% by equity, the weights in the WACC would be 25% on the debt cost of capital and 75% on the equity cost of capital. The balance sheet of the company would look like Figure 17.3 .

These weights can be derived from the right-hand side of a market-value-based balance sheet. Recall that accounting-based book values listed on traditional financial statements reflect historical costs. The market-value balance sheet is similar to the accounting balance sheet, but all values are current market values.

Just as the accounting balance sheet must balance, the market-value balance sheet must balance:

This equation reminds us that the values of a company’s debt and equity flow from the market value of the company’s assets.

Let’s look at an example of how a company would calculate the weights in its capital structure. Bluebonnet Industries has debt with a book (face) value of $5 million and equity with a book value of $3 million. Bluebonnet’s debt is trading at 97% of its face value. It has one million shares of stock, which are trading for $15 per share.

First, the market values of the company’s debt and equity must be determined. Bluebonnet’s debt is trading at a discount; its market value is 0.97 × $ 5,000,000 = $ 4,850,000 0.97 × $ 5,000,000 = $ 4,850,000 . The market value of Bluebonnet’s equity equals Number of Shares   ×   Price per Share   =   1,000,000   ×   $ 15   =   $ 15,000,000 Number of Shares   ×   Price per Share   =   1,000,000   ×   $ 15   =   $ 15,000,000 . Thus, the total market value of the company’s capital is $ 4,850,000   +   $ 15,000,000   =   $ 19,850,000 $ 4,850,000   +   $ 15,000,000   =   $ 19,850,000 . The weight of debt in Bluebonnet’s capital structure is $ 4 , 850 , 000 $ 19 , 850 , 000 = 24.4% $ 4 , 850 , 000 $ 19 , 850 , 000 = 24.4% . The weight of equity in its capital structure is $ 15 , 000 , 000 $ 19 , 850 , 000 = 75.6% $ 15 , 000 , 000 $ 19 , 850 , 000 = 75.6% .

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What Is Capital Structure?

Dynamics of debt and equity, optimal capital structure.

  • Capital Structure FAQs

The Bottom Line

  • Corporate Finance
  • Corporate Finance Basics

Capital Structure Definition, Types, Importance, and Examples

write an essay on capital structure

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom.

write an essay on capital structure

Capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth.

Equity capital arises from ownership shares in a company and claims to its future cash flows and profits. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock , or retained earnings. Short-term debt is also considered to be part of the capital structure.

Key Takeaways

  • Capital structure is how a company funds its overall operations and growth.
  • Debt consists of borrowed money that is due back to the lender, commonly with interest expense.
  • Equity consists of ownership rights in the company, without the need to pay back any investment.
  • The debt-to-equity (D/E) ratio is useful in determining the riskiness of a company's borrowing practices.

Investopedia / Matthew Collins

Both debt and equity can be found on the balance sheet . Company assets , also listed on the balance sheet, are purchased with debt or equity. Capital structure can be a mixture of a company's long-term debt, short-term debt, common stock, and preferred stock. A company's proportion of short-term debt versus long-term debt is considered when analyzing its capital structure.

When analysts refer to capital structure, they are most likely referring to a firm's debt-to-equity (D/E) ratio, which provides insight into how risky a company's borrowing practices are. Usually, a company that is heavily financed by debt has a more aggressive capital structure and, therefore, poses a greater risk to investors. This risk, however, may be the primary source of the firm's growth.

Debt is one of the two main ways a company can raise money in the capital markets. Companies benefit from debt because of its tax advantages; interest payments made as a result of borrowing funds may be tax-deductible. Debt also allows a company or business to retain ownership, unlike equity. Additionally, in times of low interest rates, debt is abundant and easy to access.

Equity allows outside investors to take partial ownership of the company. Equity is more expensive than debt, especially when interest rates are low. However, unlike debt, equity does not need to be paid back. This is a benefit to the company in the case of declining earnings . On the other hand, equity represents a claim by the owner on the future earnings of the company.

Companies that use more debt than equity to finance their assets and fund operating activities have a high leverage ratio and an aggressive capital structure. A company that pays for assets with more equity than debt has a low leverage ratio and a conservative capital structure. That said, a high leverage ratio and an aggressive capital structure can also lead to higher growth rates, whereas a conservative capital structure can lead to lower growth rates.

Analysts use the D/E ratio to compare capital structure. It is calculated by dividing total liabilities by total equity. Savvy companies have learned to incorporate both debt and equity into their corporate strategies. At times, however, companies may rely too heavily on external funding and debt in particular. Investors can monitor a firm's capital structure by tracking the D/E ratio and comparing it against the company's industry peers.

It is the goal of company management to find the ideal mix of debt and equity, also referred to as the optimal capital structure , to finance operations.

Why Do Different Companies Have Different Capital Structure?

Firms in different industries will use capital structures better suited to their type of business. Capital-intensive industries like auto manufacturing may utilize more debt, while labor-intensive or service-oriented firms like software companies may prioritize equity.

How Do Managers Decide on Capital Structure?

Assuming that a company has access to capital (e.g. investors and lenders), they will want to minimize their cost of capital . This can be done using a weighted average cost of capital (WACC) calculation. To calculate WACC the manager or analyst will multiply the cost of each capital component by its proportional weight.

How Do Analysts and Investors Use Capital Structure?

A company with too much debt can be seen as a credit risk. Too much equity, however, could mean the company is underutilizing its growth opportunities or paying too much for its cost of capital (as equity tends to be more costly than debt). Unfortunately, there is no magic ratio of debt to equity to use as guidance to achieve real-world optimal capital structure. What defines a healthy blend of debt and equity varies depending on the industry the company operates in, its stage of development, and can vary over time due to external changes in interest rates and regulatory environment.

What Measures Do Analysts and Investors Use to Evaluate Capital Structure?

In addition to the weighted average cost of capital (WACC), several metrics can be used to estimate the suitability of a company's capital structure. Leverage ratios are one group of metrics that are used, such as the debt-to-equity (D/E) ratio or debt ratio.

Capital structure is the specific mix of debt and equity that a company uses to finance its operations and growth. Debt consists of borrowed money that must be repaid, often with interest, while equity represents ownership stakes in the company. The debt-to-equity (D/E) ratio is a commonly used measure of a company's capital structure and can provide insight into its level of risk. A company with a high proportion of debt in its capital structure may be considered riskier for investors, but may also have greater potential for growth.

write an essay on capital structure

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Theories of capital structure (explained with examples) | financial management.

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The capital structure decision can affect the value of the firm either by changing the expected earnings or the cost of capital or both.

The objective of the firm should be directed towards the maximization of the value of the firm the capital structure, or average, decision should be examined from the point of view of its impact on the value of the firm.

If the value of the firm can be affected by capital structure or financing decision a firm would like to have a capital structure which maximizes the market value of the firm. The capital structure decision can affect the value of the firm either by changing the expected earnings or the cost of capital or both.

If average affects the cost of capital and the value of the firm, an optimum capital structure would be obtained at that combination of debt and equity that maximizes the total value of the firm (value of shares plus value of debt) or minimizes the weighted average cost of capital. For a better understanding of the relationship between financial average and the value of the firm, assumptions, features and implications of the capital structure theories are given below.

Assumptions and Definitions :

In order to grasp the capital structure and the cost of capital controversy property, the following assumptions are made:

Firms employ only two types of capital: debt and equity.

The total assets of the firm are given. The degree of average can be changed by selling debt to purchase shares or selling shares to retire debt.

The firm has a policy of paying 100 per cent dividends.

The operating earnings of the firm are not expected to grow.

The business risk is assumed to be constant and independent of capital structure and financial risk. The corporate income taxes do not exist. This assumption is relaxed later on.

The following are the basic definitions:

Basic definitions of Capital Structure

The above assumptions and definitions described above are valid under any of the capital structure theories. David Durand views, Traditional view and MM Hypothesis are tine important theories on capital structure.

1. David Durand views:

The existence of an optimum capital structure is not accepted by all. There exist two extreme views and a middle position. David Durand identified the two extreme views – the Net income and net operating approaches.

a) Net income Approach (Nl):

Under the net income (Nl) approach, the cost of debt and cost of equity are assumed to be independent of the capital structure. The weighted average cost of capital declines and the total value of the firm rise with increased use of average.

b) Net Operating income Approach (NOI):

Under the net operating income (NOI) approach, the cost of equity is assumed to increase linearly with average. As a result, the weighted average cost of capital remains constant and the total of the firm also remains constant as average changed.

Thus, if the Nl approach is valid, average is a significant variable and financing decisions have an important effect on the value of the firm, on the other hand, if the NOI approach is correct, then the financing decision should not be of greater concern to the financial manager, as it does not matter in the valuation of the firm.

2. Traditional view:

The traditional view is a compromise between the net income approach and the net operating approach. According to this view, the value of the firm can be increased or the cost, of capital can be reduced by the judicious mix of debt and equity capital.

This approach very clearly implies that the cost of capital decreases within the reasonable limit of debt and then increases with average. Thus an optimum capital structure exists and occurs when the cost of capital is minimum or the value of the firm is maximum.

The cost of capital declines with leverage because debt capital is chipper than equity capital within reasonable, or acceptable, limit of debt. The weighted average cost of capital will decrease with the use of debt. According to the traditional position, the manner in which the overall cost of capital reacts to changes in capital structure can be divided into three stages and this can be seen in the following figure.

The Costs of Capital Behaviour

Criticism :

1. The traditional view is criticised because it implies that totality of risk incurred by all security-holders of a firm can be altered by changing the way in which this totality of risk is distributed among the various classes of securities.

2. Modigliani and Miller also do not agree with the traditional view. They criticise the assumption that the cost of equity remains unaffected by leverage up to some reasonable limit.

3. MM Hypothesis:

The Modigliani – Miller Hypothesis is identical with the net operating income approach, Modigliani and Miller (M.M) argue that, in the absence of taxes, a firm’s market value and the cost of capital remain invariant to the capital structure changes.

Assumptions:

The M.M. hypothesis can be best explained in terms of two propositions.

It should however, be noticed that their propositions are based on the following assumptions:

1. The securities are traded in the perfect market situation.

2. Firms can be grouped into homogeneous risk classes.

3. The expected NOI is a random variable

4. Firm distribute all net earnings to the shareholders.

5. No corporate income taxes exist.

Proposition I:

Given the above stated assumptions, M-M argue that, for firms in the same risk class, the total market value is independent of the debt equity combination and is given by capitalizing the expected net operating income by the rate appropriate to that risk class.

This is their proposition I and can be expressed as follows:

MM Hypothesis

According to this proposition the average cost of capital is a constant and is not affected by leverage.

Arbitrary-process:

M-M opinion is that if two identical firms, except for the degree of leverage, have different market values or the costs of capital, arbitrary will take place to enable investors to engage in ‘personal leverage’ as against the ‘corporate leverage’ to restore equilibrium in the market.

Proposition II: It defines the cost of equity, follows from their proposition, and derived a formula as follows:

Ke = Ko + (Ko-Kd) D/S

The above equation states that, for any firm in a given risk class, the cost of equity (Ke) is equal to the constant average cost of capital (Ko) plus a premium for the financial, risk, which, is equal to debt-equity ratio times the spread between the constant average of ‘capita’ and the cost of debt, (Ko-Kd) D/S.

The crucial part of the M-M hypothesis is that Ke will not rise even if very excessive raise of leverage is made. This conclusion could be valid if the cost of borrowings, Kd remains constant for any degree of leverage. But in practice Kd increases with leverage beyond a certain acceptable, or reasonable, level of debt.

However, M-M maintain that even if the cost of debt, Kd, is increasing, the weighted average cost of capital, Ko, will remain constant. They argue that when Kd increases, Ke will increase at a decreasing rate and may even turn down eventually. This is illustrated in the following figure.

Cost of Capital (%)

The shortcoming of the M-M hypothesis lies in the assumption of perfect capital market in which arbitrage is expected to work. Due to the existence of imperfections in the capital market/arbitrage will fail to work and will give rise to discrepancy between the market values of levered and unlevered firms.

Related Articles:

  • Concept and Features of Optimal Capital Structure
  • Optimum Capital Structure of a Firm: Meaning and Features

Capital Structure

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Consider this introduction:

Leadership has been defined as “the process of influencing the activities of an organized group toward goal achievement” (Block & Tackle, 2019 , p. 46). This essay compares and contrasts two approaches to leadership from Western and Eastern traditions. The first is Fayol’s Administrative Principles approach, considered to be one of the foundations of the study of Management. The second approach is Confucianism, which is said to continue to guide leadership and management across China and much of South-East Asia (Shih, Wong, Han, Zheng, & Xin, 2004). It will be argued that these two approaches share certain core values, and a critical understanding of both approaches can support management decision-making.

The first sentence clearly states the topic. Leadership has been defined as “the process of influencing the activities of an organized group toward goal achievement” (Block & Tackle, 2019 , p. 46).

The middle sentences preview the aspects that will be addressed and hints at the approach (compare and contrast). This essay compares and contrasts two approaches to leadership from Western and Eastern traditions. The first is Fayol’s Administrative Principles approach, considered to be one of the foundations of the study of Management. The second approach is Confucianism, which is said to continue to guide leadership and management across China and much of South-East Asia (Shih, Wong, Han, Zheng, & Xin, 2004).

The final sentence clearly states the thesis, or position that will be argued. This is essentially a succinct version of the response to the essay question. It will be argued that these two approaches share certain core values, and a critical understanding of both approaches can support management decision-making.

In any academic essay, the paragraphs should follow the key points that have been outlined in the introduction. Each paragraph then contextualises and expands upon these points in relation the thesis statement of the essay. Having a paragraph plan is an effective way to map out your essay and ensure that you address the key points of the essay in detail – especially for longer forms of essays and academic writing that students engage with at university.

An basic paragraph plan would generally contain:

  • The thesis statement (for an essay)
  • A topic heading for each paragraph
  • The claim of argument to be made in each paragraph (this will be, or will inform, your topic sentence)
  • The evidence that will be presented to support the claim
  • Summary of the conclusion paragraph

Consider this example of a paragraph plan:

What are the benefits and risks of cryptocurrencies? Would you recommend a fellow student to invest in them? 

Cryptocurrencies

The cryptocurrency boom presents novel investment and return options but also present associated exposure to inherent risk vulnerabilities.

    
    Benefit 1: Accessibility

One of the main benefits claimed for cryptocurrencies is that they are easily accessible by anyone with secure web access.

•    Development of cryptocurrencies has reflected all the elements of Smith’s (2001) model of innovative cultures: ease of participation, freedom from external control, and the prospect of social and financial rewards. 
•    More than 5000 cryptocurrencies on the market – total market valuation estimated > $300 bn (Brown & Smith, 2021)


    Benefit 2: Innovation

Easy access to cryptocurrencies has encouraged the development of innovative applications

Examples: BAT tipping; Litecoin ease of use; Sports club cryptocurrencies (Patel, 2021)


    Benefit 3: Return on investment

Cryptocurrencies have not yet shown that they can retain or grow their initial value. However, for Bitcoin in particular, investors have been attracted by the promise of significant return on their investment.

•    Highest rate of return – 18% (Dasman, 2021)

    
    Risk 1: Volatility

Cryptocurrencies are subject to price volatility due to the combined influence of supply and demand, investor and user sentiments, government regulations and media hype.

•    Bitcoin price jump after media promoted  Proshare’s introduction of exchange-traded fund (Reiff, 2022).
•    Examples of investor speculation and reactive trading impacting particular cryptocurrency price (Van Welle, 2021)
•    “The Musk Effect” - how the value of Bitcoin is affected by Elon Musk’s tweets (Lapin, 2021)


    Risk 2: Insecurity

Cryptocurrencies have inherent vulnerabilities, creating insecurity that cannot be overcome solely by regulation.

•    Cryptocurrency is designed so as not to need gatekeepers such as banks or government – this means there is no third party to undo any harm if a protocol or code turns out to contain bugs (Power, 2021).
•    Global crypto exchanges are poorly regulated and vulnerable to political instability and turmoil. This affects investor’s confidence in their ability to translate crypto balances into widely accepted currency. (Blowden, 2021)



Risk 3: Limited liquidity

The high trading volume of cryptocurrencies put strain on a nascent system of global crypto exchanges. Whilst improving volume capacity has helped, a more robust system is required to meet the burgeoning trading demand and improve liquidity.

•    The success of cryptocurrency is dependant on the ability to ‘cash out’ to fiat (government issued) currencies via crypto exchanges. These are currently insufficiently regulated and developed, causing confidence and supply issues (Rutherham, 2021).

To be recommended in very limited circumstances

Paragraph plans provide an overview of your essay and provide an effective starting point for structured writing. The next step is using this plan to expand on the points as you write your essay.

Getting your writing to flow.

In almost all cases, written assignments call for students to explore complex topics or aspects of an area of study. Any academic writing task  is an opportunity to show how well you understand a particular topic, theme or area. Usually this means demonstrating how various ideas, knowledge, information or ways of thinking are connected within the context of the task or area of focus. 

This means that successful academic writing presents ideas logically, and that there is high connectivity within the writing. In other words, the aim should be for writing to have high flow to help make the connections clear.

Three ways to achieve this include:

  • ensuring that there is good connection from one paragraph to another;
  • ensuring that there is good connection from one sentence to another; and
  • using transition words effectively to make the logical connections between ideas clear.

Flow from one paragraph to another

Topic sentences, or the leading sentences of a paragraph, play a key role in connecting the ideas of an essay. High-flow topic sentences should look to include three key elements:

  • An explicit reference to the topic of the essay.
  • A reference to the main aspect of the previous paragraph
  • An introduction to the topic of the new paragraph

Consider the following examples of topic sentences in response to an essay question about Virtue Ethics.

A low-flow topic sentence : Aristotle defined phronesis as practical wisdom.

This sentence does not reference the topic (virtue ethics), nor does it link to an idea from a previous paragraph. It does however, introduce the sub-topic of the paragraph (phronesis).

A high-flow topic sentence:  Another fundamental concept in Virtue Ethics is phronesis.

This sentence refers to the essay topic (virtue ethics), acknowledges that this is an additional concept that build on the previous paragraph, and introduces the topic of this paragraph (phronesis).

Flow from one sentence to another

Well-constructed paragraphs have high connections between sentences. In general sentences that promote flow should:

  • reference the topic of the previous sentence;
  • add new information in the second half; and
  • use topic words.

The following paragraph example can be considered high-flow. It includes sentences that reference the previous sentence ( underlined ), add new information ( maroon ) and use topic words ( green ).

Another fundamental concept in Virtue Ethics is phronesis. According to Aristotle, phronesis is a form of practical wisdom through which individuals make principled decisions in line with virtues such as courage and honesty (reference). Its practical nature means that phronesis can only be developed over a lifetime of carefully considered actions and sober reflection . This practice builds a person’s moral character, allowing them to make morally-defensible choices even in unfamiliar and complex situations (reference). In other words, it is a kind of social and professional skill, which at first requires conscious effort and can still result in mistakes. However, through discipline and persistence, it becomes second nature. As a result, practitioners consistently act wisely and in accordance with the virtues they uphold . Their wise actions further strengthen their own character and contribute to human fulfilment at both individual and community levels (reference). 

Transition words that improve flow

Transition words help make the relationships and connections between ideas clear. Some examples of helpful transition words and phrases for various types of connections include:


Like X, Y is...
Unlike X, Y is...
  
In other words,
This means that...
 
For example,
For instance,

Moreover,
Furthermore,
Additionally,
 
Likewise,
Similarly,

However,
On the other hand,
 
Therefore,
As a result,
Consequently,
Hence,
Thus,

Success Now! workshops and consultations

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Literacy Ideas

Essay Writing: A complete guide for students and teachers

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P LANNING, PARAGRAPHING AND POLISHING: FINE-TUNING THE PERFECT ESSAY

Essay writing is an essential skill for every student. Whether writing a particular academic essay (such as persuasive, narrative, descriptive, or expository) or a timed exam essay, the key to getting good at writing is to write. Creating opportunities for our students to engage in extended writing activities will go a long way to helping them improve their skills as scribes.

But, putting the hours in alone will not be enough to attain the highest levels in essay writing. Practice must be meaningful. Once students have a broad overview of how to structure the various types of essays, they are ready to narrow in on the minor details that will enable them to fine-tune their work as a lean vehicle of their thoughts and ideas.

Visual Writing

In this article, we will drill down to some aspects that will assist students in taking their essay writing skills up a notch. Many ideas and activities can be integrated into broader lesson plans based on essay writing. Often, though, they will work effectively in isolation – just as athletes isolate physical movements to drill that are relevant to their sport. When these movements become second nature, they can be repeated naturally in the context of the game or in our case, the writing of the essay.

THE ULTIMATE NONFICTION WRITING TEACHING RESOURCE

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  • 270  pages of the most effective teaching strategies
  • 50+   digital tools  ready right out of the box
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  • All explanations are reinforced with  concrete examples.
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  • Clear objectives  easy to match to the demands of your curriculum

Planning an essay

essay writing | how to prepare for an essay | Essay Writing: A complete guide for students and teachers | literacyideas.com

The Boys Scouts’ motto is famously ‘Be Prepared’. It’s a solid motto that can be applied to most aspects of life; essay writing is no different. Given the purpose of an essay is generally to present a logical and reasoned argument, investing time in organising arguments, ideas, and structure would seem to be time well spent.

Given that essays can take a wide range of forms and that we all have our own individual approaches to writing, it stands to reason that there will be no single best approach to the planning stage of essay writing. That said, there are several helpful hints and techniques we can share with our students to help them wrestle their ideas into a writable form. Let’s take a look at a few of the best of these:

BREAK THE QUESTION DOWN: UNDERSTAND YOUR ESSAY TOPIC.

Whether students are tackling an assignment that you have set for them in class or responding to an essay prompt in an exam situation, they should get into the habit of analyzing the nature of the task. To do this, they should unravel the question’s meaning or prompt. Students can practice this in class by responding to various essay titles, questions, and prompts, thereby gaining valuable experience breaking these down.

Have students work in groups to underline and dissect the keywords and phrases and discuss what exactly is being asked of them in the task. Are they being asked to discuss, describe, persuade, or explain? Understanding the exact nature of the task is crucial before going any further in the planning process, never mind the writing process .

BRAINSTORM AND MIND MAP WHAT YOU KNOW:

Once students have understood what the essay task asks them, they should consider what they know about the topic and, often, how they feel about it. When teaching essay writing, we so often emphasize that it is about expressing our opinions on things, but for our younger students what they think about something isn’t always obvious, even to themselves.

Brainstorming and mind-mapping what they know about a topic offers them an opportunity to uncover not just what they already know about a topic, but also gives them a chance to reveal to themselves what they think about the topic. This will help guide them in structuring their research and, later, the essay they will write . When writing an essay in an exam context, this may be the only ‘research’ the student can undertake before the writing, so practicing this will be even more important.

RESEARCH YOUR ESSAY

The previous step above should reveal to students the general direction their research will take. With the ubiquitousness of the internet, gone are the days of students relying on a single well-thumbed encyclopaedia from the school library as their sole authoritative source in their essay. If anything, the real problem for our students today is narrowing down their sources to a manageable number. Students should use the information from the previous step to help here. At this stage, it is important that they:

●      Ensure the research material is directly relevant to the essay task

●      Record in detail the sources of the information that they will use in their essay

●      Engage with the material personally by asking questions and challenging their own biases

●      Identify the key points that will be made in their essay

●      Group ideas, counterarguments, and opinions together

●      Identify the overarching argument they will make in their own essay.

Once these stages have been completed the student is ready to organise their points into a logical order.

WRITING YOUR ESSAY

There are a number of ways for students to organize their points in preparation for writing. They can use graphic organizers , post-it notes, or any number of available writing apps. The important thing for them to consider here is that their points should follow a logical progression. This progression of their argument will be expressed in the form of body paragraphs that will inform the structure of their finished essay.

The number of paragraphs contained in an essay will depend on a number of factors such as word limits, time limits, the complexity of the question etc. Regardless of the essay’s length, students should ensure their essay follows the Rule of Three in that every essay they write contains an introduction, body paragraphs, and a conclusion.

Generally speaking, essay paragraphs will focus on one main idea that is usually expressed in a topic sentence that is followed by a series of supporting sentences that bolster that main idea. The first and final sentences are of the most significance here with the first sentence of a paragraph making the point to the reader and the final sentence of the paragraph making the overall relevance to the essay’s argument crystal clear. 

Though students will most likely be familiar with the broad generic structure of essays, it is worth investing time to ensure they have a clear conception of how each part of the essay works, that is, of the exact nature of the task it performs. Let’s review:

Common Essay Structure

Introduction: Provides the reader with context for the essay. It states the broad argument that the essay will make and informs the reader of the writer’s general perspective and approach to the question.

Body Paragraphs: These are the ‘meat’ of the essay and lay out the argument stated in the introduction point by point with supporting evidence.

Conclusion: Usually, the conclusion will restate the central argument while summarising the essay’s main supporting reasons before linking everything back to the original question.

ESSAY WRITING PARAGRAPH WRITING TIPS

essay writing | 1 How to write paragraphs | Essay Writing: A complete guide for students and teachers | literacyideas.com

●      Each paragraph should focus on a single main idea

●      Paragraphs should follow a logical sequence; students should group similar ideas together to avoid incoherence

●      Paragraphs should be denoted consistently; students should choose either to indent or skip a line

●      Transition words and phrases such as alternatively , consequently , in contrast should be used to give flow and provide a bridge between paragraphs.

HOW TO EDIT AN ESSAY

essay writing | essay editing tips | Essay Writing: A complete guide for students and teachers | literacyideas.com

Students shouldn’t expect their essays to emerge from the writing process perfectly formed. Except in exam situations and the like, thorough editing is an essential aspect in the writing process. 

Often, students struggle with this aspect of the process the most. After spending hours of effort on planning, research, and writing the first draft, students can be reluctant to go back over the same terrain they have so recently travelled. It is important at this point to give them some helpful guidelines to help them to know what to look out for. The following tips will provide just such help: 

One Piece at a Time: There is a lot to look out for in the editing process and often students overlook aspects as they try to juggle too many balls during the process. One effective strategy to combat this is for students to perform a number of rounds of editing with each focusing on a different aspect. For example, the first round could focus on content, the second round on looking out for word repetition (use a thesaurus to help here), with the third attending to spelling and grammar.

Sum It Up: When reviewing the paragraphs they have written, a good starting point is for students to read each paragraph and attempt to sum up its main point in a single line. If this is not possible, their readers will most likely have difficulty following their train of thought too and the paragraph needs to be overhauled.

Let It Breathe: When possible, encourage students to allow some time for their essay to ‘breathe’ before returning to it for editing purposes. This may require some skilful time management on the part of the student, for example, a student rush-writing the night before the deadline does not lend itself to effective editing. Fresh eyes are one of the sharpest tools in the writer’s toolbox.

Read It Aloud: This time-tested editing method is a great way for students to identify mistakes and typos in their work. We tend to read things more slowly when reading aloud giving us the time to spot errors. Also, when we read silently our minds can often fill in the gaps or gloss over the mistakes that will become apparent when we read out loud.

Phone a Friend: Peer editing is another great way to identify errors that our brains may miss when reading our own work. Encourage students to partner up for a little ‘you scratch my back, I scratch yours’.

Use Tech Tools: We need to ensure our students have the mental tools to edit their own work and for this they will need a good grasp of English grammar and punctuation. However, there are also a wealth of tech tools such as spellcheck and grammar checks that can offer a great once-over option to catch anything students may have missed in earlier editing rounds.

essay writing | Perfect essay writing for students | Essay Writing: A complete guide for students and teachers | literacyideas.com

Putting the Jewels on Display: While some struggle to edit, others struggle to let go. There comes a point when it is time for students to release their work to the reader. They must learn to relinquish control after the creation is complete. This will be much easier to achieve if the student feels that they have done everything in their control to ensure their essay is representative of the best of their abilities and if they have followed the advice here, they should be confident they have done so.

WRITING CHECKLISTS FOR ALL TEXT TYPES

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ESSAY WRITING video tutorials

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A clear, arguable thesis will tell your readers where you are going to end up, but it can also help you figure out how to get them there. Put your thesis at the top of a blank page and then make a list of the points you will need to make to argue that thesis effectively.

For example, consider this example from the thesis handout : While Sandel argues persuasively that our instinct to “remake”(54) ourselves into something ever more perfect is a problem, his belief that we can always draw a line between what is medically necessary and what makes us simply “better than well”(51) is less convincing.

To argue this thesis, the author needs to do the following:

  • Show what is persuasive about Sandel’s claims about the problems with striving for perfection.
  • Show what is not convincing about Sandel’s claim that we can clearly distinguish between medically necessary enhancements and other enhancements.

Once you have broken down your thesis into main claims, you can then think about what sub-claims you will need to make in order to support each of those main claims. That step might look like this:

  • Evidence that Sandel provides to support this claim
  • Discussion of why this evidence is convincing even in light of potential counterarguments
  • Discussion of cases when medically necessary enhancement and non-medical enhancement cannot be easily distinguished
  • Analysis of what those cases mean for Sandel’s argument
  • Consideration of counterarguments (what Sandel might say in response to this section of your argument)

Each argument you will make in an essay will be different, but this strategy will often be a useful first step in figuring out the path of your argument.  

Strategy #2: Use subheadings, even if you remove them later  

Scientific papers generally include standard subheadings to delineate different sections of the paper, including “introduction,” “methods,” and “discussion.” Even when you are not required to use subheadings, it can be helpful to put them into an early draft to help you see what you’ve written and to begin to think about how your ideas fit together. You can do this by typing subheadings above the sections of your draft.

If you’re having trouble figuring out how your ideas fit together, try beginning with informal subheadings like these:

  • Introduction  
  • Explain the author’s main point  
  • Show why this main point doesn’t hold up when we consider this other example  
  • Explain the implications of what I’ve shown for our understanding of the author  
  • Show how that changes our understanding of the topic

For longer papers, you may decide to include subheadings to guide your reader through your argument. In those cases, you would need to revise your informal subheadings to be more useful for your readers. For example, if you have initially written in something like “explain the author’s main point,” your final subheading might be something like “Sandel’s main argument” or “Sandel’s opposition to genetic enhancement.” In other cases, once you have the key pieces of your argument in place, you will be able to remove the subheadings.  

Strategy #3: Create a reverse outline from your draft  

While you may have learned to outline a paper before writing a draft, this step is often difficult because our ideas develop as we write. In some cases, it can be more helpful to write a draft in which you get all of your ideas out and then do a “reverse outline” of what you’ve already written. This doesn’t have to be formal; you can just make a list of the point in each paragraph of your draft and then ask these questions:

  • Are those points in an order that makes sense to you?  
  • Are there gaps in your argument?  
  • Do the topic sentences of the paragraphs clearly state these main points?  
  • Do you have more than one paragraph that focuses on the same point? If so, do you need both paragraphs?  
  • Do you have some paragraphs that include too many points? If so, would it make more sense to split them up?  
  • Do you make points near the end of the draft that would be more effective earlier in your paper?  
  • Are there points missing from this draft?  
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Most Popular

How to write a bridge in an essay, basic essay structure: how to build it.

Lesley J. Vos

Writing a well-structured essay is like building a house: you need a solid foundation, sturdy walls, and a roof to complete it. A well-organized essay helps your ideas flow smoothly and makes it easier for readers to follow your argument. Plus, it shows that you’ve put thought into your work, making it more convincing and enjoyable to read.

So, what does a good essay structure look like? Whether you’re writing a narrative, descriptive, expository, or persuasive essay, following this structure will help you stay organized and make your writing more impactful. Let’s dive in and learn how to put it all together!

How to Structure an Essay

Imagine you’re building a house. You need a solid foundation, walls, and a roof to make it stand. Writing an essay is similar. It requires a good structure to hold your ideas together and make your argument clear. Let’s break down the go-to essay structure to help you get started.

First, you need an introduction that grabs the reader’s attention. Start with an engaging opening sentence that makes your reader want to keep going. This could be a surprising fact, a question, or a bold statement. Then, provide some background information to set the context or give a brief overview of the topic. Finally, end your introduction with a thesis statement that clearly presents the main argument or purpose of your essay.

Next, you have the body paragraphs . Each paragraph should begin with a topic sentence that introduces the main idea. Follow this with supporting details, which can be evidence, examples, or explanations that back up your point. It’s important to keep your ideas clear and logical. Also, use transitions to smoothly link each paragraph to the next, helping the reader follow your argument effortlessly.

Lastly, your conclusion ties everything together. Start by restating your thesis in different words to reinforce your main argument. Then, summarize the key points you discussed in the body paragraphs. This helps remind the reader of the journey they’ve taken through your essay. Finally, end with a closing statement or call to action that leaves a lasting impression. This could be a thought-provoking comment, a suggestion for further research, or a call to action based on your argument.

Remember, the introduction sets the stage, the body paragraphs build the argument, and the conclusion wraps it all up.

With practice, you’ll find that this go-to structure makes essay writing much easier and more effective.

Basic Essay Structure for Different Types of Essays

Writing essays becomes simpler when you understand the structure. Here, we’ll look at five common types: narrative, descriptive, expository, persuasive, and comparative essays. Each has unique characteristics and serves a specific purpose. I’ll also include an example of how to structure the main body for each type.

Narrative Essay

A narrative essay tells a story from the author’s perspective. It aims to engage the reader by making the story interesting and relatable.

First person (“I”) or third person (“he,” “she”)
A clear sequence of events
Well-developed individuals involved in the story
Descriptions of where and when the story takes place
The underlying message or lesson

Example Structure:

  • Introduction : Set the scene and introduce the main character.
  • Body Paragraph 1 : Describe the beginning of the story (setting, characters).
  • Body Paragraph 2 : Describe the main event or conflict.
  • Body Paragraph 3 : Describe the climax of the story.
  • Conclusion : Describe the resolution and the lesson learned.

Descriptive Essay

A descriptive essay paints a picture with words. It aims to describe a person, place, object, or event so vividly that the reader can visualize it.

Use of the five senses: sight, sound, smell, touch, taste
Descriptive adjectives and adverbs
Can be organized spatially, chronologically, or by importance
Creating mental images through detailed descriptions
Detailed focus on the subject being described
  • Introduction : Introduce the subject you will describe.
  • Body Paragraph 1 : Describe the subject using sight (what it looks like).
  • Body Paragraph 2 : Describe the subject using sound (what it sounds like).
  • Body Paragraph 3 : Describe the subject using smell, touch, and taste (if applicable).
  • Conclusion : Summarize the main points and highlight the overall impression.

Expository Essay

An expository essay explains or informs. It provides a balanced analysis of a topic, using facts, statistics, and examples.

A specific statement or argument the essay supports
Facts, statistics, and examples
Introduction, body paragraphs each with a main idea, and a conclusion
Objective and impartial
Detailed explanation of the topic
  • Introduction : Present the topic and state the thesis.
  • Body Paragraph 1 : Explain the first main idea with supporting facts and examples.
  • Body Paragraph 2 : Explain the second main idea with supporting facts and examples.
  • Body Paragraph 3 : Explain the third main idea with supporting facts and examples.
  • Conclusion : Summarize the main points and restate the thesis.

Persuasive Essay

A persuasive essay aims to convince the reader to accept a particular viewpoint or take a specific action. It uses logic, reason, and emotion to build a compelling argument.

A definite stance on an issue
Logical reasons to support the position
Facts, statistics, expert opinions, and examples
Addressing opposing views and refuting them
Using persuasive language to elicit emotions from the reader
  • Introduction : Introduce the topic and state your position.
  • Body Paragraph 1 : Present the first supporting argument with evidence.
  • Body Paragraph 2 : Present the second supporting argument with evidence.
  • Body Paragraph 3 : Present the third supporting argument with evidence.
  • Body Paragraph 4 : Address a counterargument and refute it.
  • Conclusion : Summarize the arguments and reinforce your position.

Comparative Essay

A comparative essay examines the similarities and differences between two or more subjects. It helps the reader understand the subjects better by comparing them.

Clear criteria for comparison
Two or more subjects being compared
Point-by-point or block method
Indicates the purpose and scope of the comparison
Detailed examination of similarities and differences
  • Introduction : Introduce the subjects and state the basis for comparison.
  • Body Paragraph 1 : Compare the first point of similarity or difference between the subjects.
  • Body Paragraph 2 : Compare the second point of similarity or difference between the subjects.
  • Body Paragraph 3 : Compare the third point of similarity or difference between the subjects.
  • Conclusion : Summarize the comparisons and highlight the overall insights.

Now, you can effectively organize your essays and make your writing clear and engaging. Each type of essay has its unique features, so choose the one that best fits your topic and purpose.

How to Organize an Essay with Structural Transition Words

Using transitional words is like putting up road signs for your reader. These words guide them through your essay, making it easier to follow your thoughts and arguments. They help in creating a smooth flow, making your writing more engaging and coherent. Let’s dive into different types of transitional words and how they can be used effectively.

👋 Introduction to Body

When you transition from the introduction to the body of your essay, you need words that signal the beginning of your main discussion. These words help to seamlessly connect the introduction to the detailed points you will cover.

For instance, words like “ Firstly ,” “ To begin with ,” and “ Initially ” are perfect for starting your body paragraphs. They let the reader know that you are moving from the introductory context to the main points. For example, you might say, “Firstly, it’s important to understand the historical context of the issue.” Or, “To begin with, let’s explore the primary causes of the conflict.” These words set the stage for detailed analysis and help the reader transition smoothly from the general introduction to specific arguments.

➕ Adding Information

When you need to add more information or points to your argument, transitional words come in handy. These words indicate that there is more to say on the topic, building on what has already been mentioned.

Words like “ Furthermore ,” “ Moreover ,” and “ Additionally ” are great for adding information. For example, “Furthermore, recent studies support this claim,” or “Moreover, this approach has been widely adopted in several countries.” By using these words, you show that you are expanding on your previous points, making your argument more comprehensive and convincing.

✅ Providing Examples

To illustrate your points more clearly, providing examples is absolutely necessary. Transitional words help introduce these examples smoothly, showing the reader that you are giving concrete evidence to support your claims.

Examples of such words include “ For example ,” “ For instance ,” and “ Such as .” You might write, “For example, many schools have implemented this program successfully,” or “For instance, in the case of renewable energy, solar power has shown remarkable potential.” These words prepare the reader for specific details that back up your general statements, making your argument stronger.

☀️❄️ Contrasting Information

Sometimes, you need to present contrasting information to show different perspectives or to highlight an exception to the rule. Transitional words help indicate a shift from one idea to a contrasting one.

Words like “ However ,” “ On the other hand ,” and “ Conversely ” are ideal for this purpose. For example, “However, not all experts agree with this view,” or “On the other hand, there are significant challenges to this approach.” These words signal to the reader that you are about to present a different angle, helping them to understand the complexity of the issue.

🔀 Showing Cause and Effect

To explain the relationship between actions and outcomes, cause-and-effect transitional words are essential. They help you link causes to their effects clearly and logically.

Words such as “ Therefore ,” “ Consequently ,” and “ As a result ” are perfect for this. You might say, “Therefore, it is clear that immediate action is necessary,” or “Consequently, the policy had to be revised.” These words make it easy for the reader to follow the logical progression of your argument, showing how one idea leads to another.

📍 Summarizing/Concluding

In the conclusion of your essay, you need transitional words that help you summarize your main points and bring your argument to a close. These words signal to the reader that you are wrapping up your discussion.

Examples include “ In conclusion ,” “ To summarize ,” and “ Ultimately .” For example, “In conclusion, the evidence strongly supports the need for policy change,” or “To summarize, the key factors influencing this issue have been thoroughly examined.” These words help you succinctly tie together your main points and leave the reader with a clear understanding of your argument.

Tips for Writing a Structure of an Essay

Writing a well-structured essay is like building a strong bridge that connects your ideas seamlessly. Let’s dive into some tips that can help you create a clear and effective essay structure.

Basic Essay Structure: How to Build It

Think of an outline as your essay’s roadmap. Before you start writing, take some time to outline your main points. This will give you a clear direction and keep you on track. Start with your introduction, list out the key points you’ll cover in the body, and jot down ideas for your conclusion. Outlining helps you organize your thoughts and makes the writing process smoother.

Basic Essay Structure: How to Build It

Each paragraph in your essay should focus on one main idea. Begin with a topic sentence that clearly states this idea. The rest of the paragraph should provide evidence, examples, or explanations that support the topic sentence. This keeps your writing focused and makes it easier for the reader to follow your argument. For example, if you’re writing about the benefits of exercise, one paragraph might focus on physical health benefits, while another might discuss mental health improvements.

Basic Essay Structure: How to Build It

Transitions are the glue that holds your essay together. They help you move smoothly from one idea to the next, ensuring your essay flows well. Words like “Firstly,” “Additionally,” “However,” and “In conclusion” guide your reader through your essay. These transitions make your writing more coherent and help emphasize the relationships between your ideas.

Basic Essay Structure: How to Build It

A well-balanced essay is easy to read and understand. Make sure your paragraphs are roughly the same length and provide a balanced amount of information. Avoid cramming too much information into one paragraph or making another too short. Each paragraph should be clear, focused, and contribute to your overall argument. This balance keeps your essay well-organized and engaging.

Basic Essay Structure: How to Build It

Once you’ve finished writing, take the time to proofread your essay. Look for structural consistency: Are your paragraphs in a logical order? Do your transitions make sense? Is each paragraph focused on a single main idea? Proofreading helps you catch any inconsistencies or areas that might confuse your reader. It’s also a good time to check for clarity. Make sure your ideas are clearly expressed and easy to understand.

Writing a structured essay doesn’t have to be complicated. By outlining your essay, ensuring each paragraph has a clear main idea, using transitions, keeping paragraphs balanced, and proofreading for consistency and clarity, you can create an essay that is both engaging and easy to follow. Practice these tips, and you’ll become more confident in your essay writing skills. Happy writing!

How should I structure an essay?

Structuring an essay involves three main parts: the introduction, the body, and the conclusion. Start with an engaging introduction that includes a hook, background information, and a clear thesis statement. Then, develop your main ideas in body paragraphs, each starting with a topic sentence and supported by evidence. Finally, wrap up your essay with a conclusion that restates the thesis, summarizes key points, and leaves the reader with a final thought or call to action.

What are the 3 major parts of essay structure?

The three major parts of an essay structure are the introduction, body, and conclusion. The introduction sets the stage by introducing the topic and stating the thesis. The body is the main section where you develop your ideas and arguments, usually in several paragraphs. The conclusion ties everything together, restating the thesis and summarizing the main points, providing closure to the discussion.

What is the 5 point structure to an essay?

The 5 point structure to an essay includes:

  • Introduction : Hook, background information, and thesis statement.
  • Body Paragraph 1 : First main point with supporting evidence.
  • Body Paragraph 2 : Second main point with supporting evidence.
  • Body Paragraph 3 : Third main point with supporting evidence.
  • Conclusion : Restate thesis, summarize key points, and final thought.

This structure helps organize your essay in a clear, logical manner, making it easier for the reader to follow and understand your argument.

What is an example of essay structure?

An example of an essay structure might look like this:

Introduction : “Education is essential for personal and societal growth. This essay will discuss the importance of education in developing critical thinking skills, promoting social equality, and fostering economic development.”

Body Paragraph 1 : “Firstly, education plays a crucial role in developing critical thinking skills. Students learn to analyze information, evaluate arguments, and solve problems creatively. For instance, critical thinking is emphasized in subjects like mathematics and science.”

Body Paragraph 2 : “Moreover, education promotes social equality by providing opportunities for all individuals, regardless of their background. Public schooling systems aim to offer equal access to quality education, helping to bridge the gap between different social classes.”

Body Paragraph 3 : “Finally, education fosters economic development by creating a skilled workforce. Educated individuals are more likely to find employment, contribute to innovation, and drive economic growth. For example, countries with higher education levels often have stronger economies.”

Conclusion : “In conclusion, education is vital for developing critical thinking skills, promoting social equality, and fostering economic development. Investing in education is essential for creating a better future for individuals and society as a whole.”

This structure ensures that your essay is well-organized and that each point is clearly presented and supported.

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Example of a Great Essay | Explanations, Tips & Tricks

Published on February 9, 2015 by Shane Bryson . Revised on July 23, 2023 by Shona McCombes.

This example guides you through the structure of an essay. It shows how to build an effective introduction , focused paragraphs , clear transitions between ideas, and a strong conclusion .

Each paragraph addresses a single central point, introduced by a topic sentence , and each point is directly related to the thesis statement .

As you read, hover over the highlighted parts to learn what they do and why they work.

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Other interesting articles, frequently asked questions about writing an essay, an appeal to the senses: the development of the braille system in nineteenth-century france.

The invention of Braille was a major turning point in the history of disability. The writing system of raised dots used by visually impaired people was developed by Louis Braille in nineteenth-century France. In a society that did not value disabled people in general, blindness was particularly stigmatized, and lack of access to reading and writing was a significant barrier to social participation. The idea of tactile reading was not entirely new, but existing methods based on sighted systems were difficult to learn and use. As the first writing system designed for blind people’s needs, Braille was a groundbreaking new accessibility tool. It not only provided practical benefits, but also helped change the cultural status of blindness. This essay begins by discussing the situation of blind people in nineteenth-century Europe. It then describes the invention of Braille and the gradual process of its acceptance within blind education. Subsequently, it explores the wide-ranging effects of this invention on blind people’s social and cultural lives.

Lack of access to reading and writing put blind people at a serious disadvantage in nineteenth-century society. Text was one of the primary methods through which people engaged with culture, communicated with others, and accessed information; without a well-developed reading system that did not rely on sight, blind people were excluded from social participation (Weygand, 2009). While disabled people in general suffered from discrimination, blindness was widely viewed as the worst disability, and it was commonly believed that blind people were incapable of pursuing a profession or improving themselves through culture (Weygand, 2009). This demonstrates the importance of reading and writing to social status at the time: without access to text, it was considered impossible to fully participate in society. Blind people were excluded from the sighted world, but also entirely dependent on sighted people for information and education.

In France, debates about how to deal with disability led to the adoption of different strategies over time. While people with temporary difficulties were able to access public welfare, the most common response to people with long-term disabilities, such as hearing or vision loss, was to group them together in institutions (Tombs, 1996). At first, a joint institute for the blind and deaf was created, and although the partnership was motivated more by financial considerations than by the well-being of the residents, the institute aimed to help people develop skills valuable to society (Weygand, 2009). Eventually blind institutions were separated from deaf institutions, and the focus shifted towards education of the blind, as was the case for the Royal Institute for Blind Youth, which Louis Braille attended (Jimenez et al, 2009). The growing acknowledgement of the uniqueness of different disabilities led to more targeted education strategies, fostering an environment in which the benefits of a specifically blind education could be more widely recognized.

Several different systems of tactile reading can be seen as forerunners to the method Louis Braille developed, but these systems were all developed based on the sighted system. The Royal Institute for Blind Youth in Paris taught the students to read embossed roman letters, a method created by the school’s founder, Valentin Hauy (Jimenez et al., 2009). Reading this way proved to be a rather arduous task, as the letters were difficult to distinguish by touch. The embossed letter method was based on the reading system of sighted people, with minimal adaptation for those with vision loss. As a result, this method did not gain significant success among blind students.

Louis Braille was bound to be influenced by his school’s founder, but the most influential pre-Braille tactile reading system was Charles Barbier’s night writing. A soldier in Napoleon’s army, Barbier developed a system in 1819 that used 12 dots with a five line musical staff (Kersten, 1997). His intention was to develop a system that would allow the military to communicate at night without the need for light (Herron, 2009). The code developed by Barbier was phonetic (Jimenez et al., 2009); in other words, the code was designed for sighted people and was based on the sounds of words, not on an actual alphabet. Barbier discovered that variants of raised dots within a square were the easiest method of reading by touch (Jimenez et al., 2009). This system proved effective for the transmission of short messages between military personnel, but the symbols were too large for the fingertip, greatly reducing the speed at which a message could be read (Herron, 2009). For this reason, it was unsuitable for daily use and was not widely adopted in the blind community.

Nevertheless, Barbier’s military dot system was more efficient than Hauy’s embossed letters, and it provided the framework within which Louis Braille developed his method. Barbier’s system, with its dashes and dots, could form over 4000 combinations (Jimenez et al., 2009). Compared to the 26 letters of the Latin alphabet, this was an absurdly high number. Braille kept the raised dot form, but developed a more manageable system that would reflect the sighted alphabet. He replaced Barbier’s dashes and dots with just six dots in a rectangular configuration (Jimenez et al., 2009). The result was that the blind population in France had a tactile reading system using dots (like Barbier’s) that was based on the structure of the sighted alphabet (like Hauy’s); crucially, this system was the first developed specifically for the purposes of the blind.

While the Braille system gained immediate popularity with the blind students at the Institute in Paris, it had to gain acceptance among the sighted before its adoption throughout France. This support was necessary because sighted teachers and leaders had ultimate control over the propagation of Braille resources. Many of the teachers at the Royal Institute for Blind Youth resisted learning Braille’s system because they found the tactile method of reading difficult to learn (Bullock & Galst, 2009). This resistance was symptomatic of the prevalent attitude that the blind population had to adapt to the sighted world rather than develop their own tools and methods. Over time, however, with the increasing impetus to make social contribution possible for all, teachers began to appreciate the usefulness of Braille’s system (Bullock & Galst, 2009), realizing that access to reading could help improve the productivity and integration of people with vision loss. It took approximately 30 years, but the French government eventually approved the Braille system, and it was established throughout the country (Bullock & Galst, 2009).

Although Blind people remained marginalized throughout the nineteenth century, the Braille system granted them growing opportunities for social participation. Most obviously, Braille allowed people with vision loss to read the same alphabet used by sighted people (Bullock & Galst, 2009), allowing them to participate in certain cultural experiences previously unavailable to them. Written works, such as books and poetry, had previously been inaccessible to the blind population without the aid of a reader, limiting their autonomy. As books began to be distributed in Braille, this barrier was reduced, enabling people with vision loss to access information autonomously. The closing of the gap between the abilities of blind and the sighted contributed to a gradual shift in blind people’s status, lessening the cultural perception of the blind as essentially different and facilitating greater social integration.

The Braille system also had important cultural effects beyond the sphere of written culture. Its invention later led to the development of a music notation system for the blind, although Louis Braille did not develop this system himself (Jimenez, et al., 2009). This development helped remove a cultural obstacle that had been introduced by the popularization of written musical notation in the early 1500s. While music had previously been an arena in which the blind could participate on equal footing, the transition from memory-based performance to notation-based performance meant that blind musicians were no longer able to compete with sighted musicians (Kersten, 1997). As a result, a tactile musical notation system became necessary for professional equality between blind and sighted musicians (Kersten, 1997).

Braille paved the way for dramatic cultural changes in the way blind people were treated and the opportunities available to them. Louis Braille’s innovation was to reimagine existing reading systems from a blind perspective, and the success of this invention required sighted teachers to adapt to their students’ reality instead of the other way around. In this sense, Braille helped drive broader social changes in the status of blindness. New accessibility tools provide practical advantages to those who need them, but they can also change the perspectives and attitudes of those who do not.

Bullock, J. D., & Galst, J. M. (2009). The Story of Louis Braille. Archives of Ophthalmology , 127(11), 1532. https://​doi.org/10.1001/​archophthalmol.2009.286.

Herron, M. (2009, May 6). Blind visionary. Retrieved from https://​eandt.theiet.org/​content/​articles/2009/05/​blind-visionary/.

Jiménez, J., Olea, J., Torres, J., Alonso, I., Harder, D., & Fischer, K. (2009). Biography of Louis Braille and Invention of the Braille Alphabet. Survey of Ophthalmology , 54(1), 142–149. https://​doi.org/10.1016/​j.survophthal.2008.10.006.

Kersten, F.G. (1997). The history and development of Braille music methodology. The Bulletin of Historical Research in Music Education , 18(2). Retrieved from https://​www.jstor.org/​stable/40214926.

Mellor, C.M. (2006). Louis Braille: A touch of genius . Boston: National Braille Press.

Tombs, R. (1996). France: 1814-1914 . London: Pearson Education Ltd.

Weygand, Z. (2009). The blind in French society from the Middle Ages to the century of Louis Braille . Stanford: Stanford University Press.

If you want to know more about AI tools , college essays , or fallacies make sure to check out some of our other articles with explanations and examples or go directly to our tools!

  • Ad hominem fallacy
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An essay is a focused piece of writing that explains, argues, describes, or narrates.

In high school, you may have to write many different types of essays to develop your writing skills.

Academic essays at college level are usually argumentative : you develop a clear thesis about your topic and make a case for your position using evidence, analysis and interpretation.

The structure of an essay is divided into an introduction that presents your topic and thesis statement , a body containing your in-depth analysis and arguments, and a conclusion wrapping up your ideas.

The structure of the body is flexible, but you should always spend some time thinking about how you can organize your essay to best serve your ideas.

Your essay introduction should include three main things, in this order:

  • An opening hook to catch the reader’s attention.
  • Relevant background information that the reader needs to know.
  • A thesis statement that presents your main point or argument.

The length of each part depends on the length and complexity of your essay .

A thesis statement is a sentence that sums up the central point of your paper or essay . Everything else you write should relate to this key idea.

A topic sentence is a sentence that expresses the main point of a paragraph . Everything else in the paragraph should relate to the topic sentence.

At college level, you must properly cite your sources in all essays , research papers , and other academic texts (except exams and in-class exercises).

Add a citation whenever you quote , paraphrase , or summarize information or ideas from a source. You should also give full source details in a bibliography or reference list at the end of your text.

The exact format of your citations depends on which citation style you are instructed to use. The most common styles are APA , MLA , and Chicago .

Cite this Scribbr article

If you want to cite this source, you can copy and paste the citation or click the “Cite this Scribbr article” button to automatically add the citation to our free Citation Generator.

Bryson, S. (2023, July 23). Example of a Great Essay | Explanations, Tips & Tricks. Scribbr. Retrieved August 26, 2024, from https://www.scribbr.com/academic-essay/example-essay-structure/

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How to Make AI Writing Sound More Human

Generative AI tools have revolutionized content creation, making the process faster and more efficient. However, AI-generated text often lacks the nuanced touch of human writing, which can lead to content that feels robotic, odd, or impersonal. In this article, we will explore various strategies you can apply to infuse AI writing with a natural touch. We'll begin by understanding the importance of humanizing AI text and then delve into practical techniques to make AI text more human.

From applying simple edits and varying sentence structures to using emotional language and cultural references, this article provides tips to transform your AI content. Additionally, we'll discuss enhancing specific document types and advanced techniques like storytelling and humor. Whether you're working on business documents or academic essays, this guide will help you make AI writing sound more human, engaging, and relatable.

Understanding the Importance of Humanizing AI Text

Humanizing AI text is crucial for creating content that resonates with readers. While AI can generate text almost instantly, it tends to lack the emotional depth and personal touch that a human writer can portray. This can result in content that feels sterile and unengaging. Additionally, AI-written text can be identified up by some best AI detectors that discern between text written by a human and that written by an AI tool.

By changing AI writing to human, you enhance its relatability and effectiveness, making it more likely to connect with your audience. This is important in marketing, customer service, and similar customer-facing content, where it is crucial to build an authentic connection with the reader. However, it is also critical to make text sound more human when writing a research paper, essay, or other academic document, as the use of AI writing tools to compose is often prohibited at colleges and universities. Overall humanizing AI text can improve reader trust, drive engagement, and ultimately achieve better results for any kind of writing.

A woman is trying to make AI text more human

Techniques to Make AI Text More Human

Apply a combination of the following techniques to make AI sound more human when writing your important documents. Some of these suggested methods may be more suitable for specific types of writing, but using multiple techniques will ensure that you thoroughly make it sound human.

How to make AI writing sound more human

To make text sound more human after using AI, apply a more conversational language and tone. Incorporate personal anecdotes and experiences to add authenticity and a personal touch.

For example, if the AI text output reads, "The company's revenue increased by 20% last year," add personal pronouns and qualitative adjectives:

"Last year, we saw our revenue grow by an impressive 20%, which was a huge milestone for us."

This not only provides factual information but also conveys that the author is proud of this achievement, making the content more compelling and human-like.

Make AI text sound human with contextual adjustments

Add context-specific details to make the content more relatable. Tailoring the message to the reader's own situation can significantly improve engagement.

If the output text flatly states, "It is important to exercise regularly," you could instead write, "For those of us working long hours at a desk, fitting in regular exercise is crucial to staying healthy." This adjustment not only provides needed information but also connects with the reader's daily life, making the advice come across as more relevant and impactful.

Grammatical ways to make AI sound more human

To make AI-generated text more human, focus on the grammatical aspects. Start by applying synonyms and expressions that people use in everyday conversation. For instance, replace "commence" with "start" and "purchase" with "buy."

Use contractions and informal constructions

Using contractions can also make the text sound more natural. Instead of "do not," use "don't," and replace "will not" with "won't."

Avoid overly formal or technical jargon unless necessary. For example, instead of saying "utilize," simply use "use," and instead of "assistance," opt for "help."

By incorporating these grammatical adjustments, you can significantly enhance the relatability and readability of AI-generated content, making it sound more human.

Apply synonyms and expressions

Incorporate synonyms and expressions that are common in everyday language. Use contractions to create a conversational tone. For example, instead of "cannot," use "can't," and replace "you will" with "you'll." This makes the text sound more natural and relatable.

Avoid overly formal or technical jargon unless it's essential to the context. Instead of saying "facilitate," use "help," and swap "purchase" for "buy." These changes ensure clarity and make the text more accessible to a wider audience.

By applying these strategies, you can enhance the readability and relatability of AI-generated content, making it feel more like it was written by a human.

Make AI sound human by varying sentence structure

Another way AI-generated text sounds a but “inhuman” is in the way it often uses a similar cadence of sentences. To make your AI text more human, vary the sentence structure by mixing short and long sentences. This creates a natural rhythm and keeps readers engaged.

For example, instead of writing only long sentences, combine them with shorter ones:

"The project was challenging. We overcame obstacles through teamwork and determination."

Using active voice instead of passive voice can also make sentences more direct and engaging.

For instance, change "Mistakes were made by the team" to "The team made mistakes." Similarly, replace "The proposal was approved by the committee" with "The committee approved the proposal." These adjustments make the writing clearer and more dynamic, enhancing the human-like quality of the text.

Additional Ways to Rewrite AI Content to Human

Humanize ai text with emotional language.

Humanizing AI text involves infusing it with emotional language and personal touches. Adding emotions and opinions can transform dry, factual text into engaging and relatable content.

For instance, instead of writing "The product launch was successful," you could say, "We were ecstatic about the incredible success of our product launch."

Incorporating opinions can also make content more human-like.

For example, change "The book received positive reviews" to "Readers loved the book, praising its compelling narrative and vivid characters."

To further humanize AI text, include sensory details and personal reflections. Instead of "The event was well-attended," try "We were delighted to see a full house, with guests buzzing with excitement throughout the event."

These strategies add depth and personality to AI-generated content, making it resonate more with readers on a personal level.

Use cultural references to make AI text more human

Incorporating cultural references, idioms, and slang can make AI-generated text feel more warmer and more personal. By using language that is familiar to your audience, you can create a stronger connection with the reader.

For example, whereas an AI writer might say "The project is difficult," add an idiom such as "The project is no walk in the park."

Replace somewhat stiff language like "The deadline is approaching" with the idiom "The clock is ticking on our deadline." This adds urgency and a sense of familiarity to your writing.

Using idioms and cultural phrases that resonate with your audience not only enhances readability but also helps convey complex ideas in a way that feels natural and engaging. These small adjustments can significantly humanize AI text, making it more appealing and effective for your readers.

Enhancing Specific Document Types

The following will illustrate how to make AI writing more human in two different types of documents: academic essays and admissions essays.

AI academic essay example

Ai-written academic essay passage.

The Weimar Republic was in Germany after World War I and was known for its culture and art. Even though there were political and economic problems, art culture grew a lot. This time was important for modern art because new movements started. Artists and intellectuals tried new things and did not follow old ways. This led to styles like Expressionism and Bauhaus. Berlin was a place where many artists, writers, and musicians came together. They created a lot, even though the times were hard. Art during this time was not just about creating but also commenting on politics and society. It showed the changes and challenges after the war.

Academic essay made more natural and human with revisions

The Weimar Republic was the German national government that formed following World War I. It represented a time of historic dynamism and cultural creativity. Although the period was economically and politically turbulent, artistic movements flourished, birthing innovations that permanently changed the course of modern art. Both intellectuals and artists experimented in many ways and interrogated social norms of traditional Germany, resulting in the groundbreaking Expressionism and Bauhaus styles. Berlin was an especially lively hub for these avant-garde writers, artists, thinkers, and musicians, and a spirit of creative and defiant flame was sparked in sharp relief to the turbulent times. This “cultural renaissance” could be identified by its nonconformity to conventions and the desire of its purveyors to explore the nuances of modern life. The art captured the chaotic-yet-hopeful zeitgeist of the Weimar Republic. Art became a means of political and social commentary, underlying the difficulties and optimism of post-war Europe.

Explanation of revisions

More natural phrases and idioms applied: The human-altered passage uses phrases like "giving birth to innovative movements" and "spirit of creativity," which are more vivid and expressive compared to the basic passage's simpler descriptions.

More emotional language used: Emotional language is applied with words like "remarkable cultural dynamism" and "bold defiance of conventions," which convey a stronger emotional impact than the straightforward statements in the basic passage.

Sentence length and structure varied: The altered passage varies sentence lengths and structures to create a more engaging rhythm, while the basic passage uses mostly short, simple sentences.

Contractions introduced: The altered passage includes contractions like "wasn't just a form of expression" to mimic natural speech, enhancing readability and making the tone more conversational.

Synonyms and expressions applied: Synonyms like "flourished" and "fostering" replace repetitive words in the basic passage, enriching the text and avoiding monotony.

See more tips on how to write an academic essay , including examples, best practices, and academic editing services

AI college admissions essay example (Common App Essay)

Ai-written admissions essay passage.

Growing up in a small town, I always found solace in the pages of books. Stories became my escape, offering endless worlds to explore and characters to meet. It was during a summer of volunteering at my local library that I realized the profound impact literature could have on a community. Watching children light up with curiosity and imagination as they discovered new stories inspired me to pursue a career in education. I want to create a classroom environment where students feel the same excitement and wonder about learning that I felt. My passion for teaching is fueled by a desire to empower young minds, encouraging them to ask questions and embrace creativity. I believe education is the key to unlocking potential and that, as a teacher, I can inspire the next generation to dream big and aim high.

Admissions essay made more natural and human with revisions

When I was growing up in my smal town, I absolutely adored reading novels. Reading was a way for me to escape to new fantastic worlds. While volunteering at my local library in summers, I came to understand just how crucial books are to enriching someone’s life. I watched young children’s eye light up while reading short stories. These experiences were the catalyst that made me want to become a teacher. Now that I am pursuing education, my goal is to make my classroom into a place where students are excited about learning. My goal is to help students think deeper about ideas and to express their creativity in their own ways. I believe education is a prerequisite for anyone who wants to reach their goals. When I finally achieve my education degree, acquire my license, and become a teacher, my primary mission will be to help students dream and achieve their own goals through reading.

More natural phrases and idioms included: The human-altered passage uses idiomatic expressions like "find solace in the pages of books" and "unlocking potential," which are more vivid and compelling compared to the plain statements of the AI-written passage.

Some emotional language applied: Emotional language such as "stories became my escape" and "lit up with curiosity and imagination" conveys a stronger emotional connection and passion.

Sentence length and structure varied: The revised passage includes a mix of longer and shorter sentences, creating a more dynamic and engaging flow. The basic passage uses simple, uniform sentence structures.

Contractions introduced: Contractions like "can't" and "it's" are used in the altered passage to create a more conversational and relatable tone.

Synonyms and expressions applied: The altered passage employs synonyms and expressive language, like "profound impact" instead of "important," to enrich the narrative and convey a deeper meaning.

Read more tips on how to write a college admissions essay , including how to write the Common App Essay , Common App Essay prompts , college personal statement examples , and essay editing services .

Use an AI proofreader or grammar checker before submitting your document

If you’ve made if this far, congratulations! You now know there are many ways to make your AI writing sound more natural and human. Of course, one sure-fire way is to write all of the text yourself, without the aid of an AI writer. But if you do use an AI tool to draft your document , make sure to apply careful revision and use the methods surveyed in this article and you are sure to make the text sound more human.

Before submitting any important document, you might also want to run your work through an AI proofreader or AI grammar checker to ensure that there are no objective language errors. For other AI revision needs, use the Wordvice AI Writing Assistant , a suite of revision tools that includes an AI translator , AI paraphraser , AI summarizer , AI spell checker , AI plagiarism detector , AI content detector , and more!

Best of luck writing your next paper. But remember: always use AI writing tools responsibly and ethically.

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  1. Capital Structure

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  2. PPT

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  3. Capital Structure I Basic Concepts The Capital-Structure

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  4. Capital Structure Theory Free Essay Example

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  5. Capital Structure AND Solvency Analysis

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  6. Capital structure

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COMMENTS

  1. The Capital Structure Model

    Capital structure is determined by the mixture of long-term debt and equity used by the firm to finance its operations. A company's capital structure is analyzed together with its cost of capital while considering various types of financial plans to be pursued by the company. Get a custom essay on The Capital Structure Model. 185 writers online.

  2. Outline Formats: Step-by-Step Guide with Examples

    A. Introduction. 1. briefly mention background of social media. a. specific examples like Instagram, TikTok, and YouTube. 2. explain how social media is a major part of modern people's lives. 3. end with a teaser about whether or not social media is actually good. B. The advantages of social media.

  3. Analyzing a Company's Capital Structure

    Capital structure is a type of funding that supports a company's growth and related assets. Sometimes it's referred to as capitalization structure or simply capitalization. Expressed as a formula ...

  4. 17.1 The Concept of Capital Structure

    Attracting Capital. When a company raises money from investors, those investors forgo the opportunity to invest that money elsewhere. In economics terms, there is an opportunity cost to those who buy a company's bonds or stock.. Suppose, for example, that you have $5,000, and you purchase Tesla stock. You could have purchased Apple stock or Disney stock instead.

  5. How to Structure an Essay

    The basic structure of an essay always consists of an introduction, a body, and a conclusion. But for many students, the most difficult part of structuring an essay is deciding how to organize information within the body. This article provides useful templates and tips to help you outline your essay, make decisions about your structure, and ...

  6. Types of Outlines

    Alphanumeric Outlines. This is the most common type of outline and usually instantly recognizable to most people. The formatting follows these characters, in this order: Roman Numerals. Capitalized Letters. Arabic Numerals. Lowercase Letters. If the outline needs to subdivide beyond these divisions, use Arabic numerals inside parentheses and ...

  7. Capital Structure Definition, Types, Importance, and Examples

    Capital Structure: The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes ...

  8. How to Write an Essay Outline

    Expository essay outline. Claim that the printing press marks the end of the Middle Ages. Provide background on the low levels of literacy before the printing press. Present the thesis statement: The invention of the printing press increased circulation of information in Europe, paving the way for the Reformation.

  9. Essay Structure: The 3 Main Parts of an Essay

    Basic essay structure: the 3 main parts of an essay. Almost every single essay that's ever been written follows the same basic structure: Introduction. Body paragraphs. Conclusion. This structure has stood the test of time for one simple reason: It works. It clearly presents the writer's position, supports that position with relevant ...

  10. The Writing Process

    Table of contents. Step 1: Prewriting. Step 2: Planning and outlining. Step 3: Writing a first draft. Step 4: Redrafting and revising. Step 5: Editing and proofreading. Other interesting articles. Frequently asked questions about the writing process.

  11. Capital Structure Study: A Systematic Review and Bibliometric Analysis

    The capital structure study is extant and wide. It touches every sector of the economy with its extreme relevance. Its importance cannot be restricted to empirical analysis and financial data study rather on knowing its significance an attempt has been made to highlight its features, the areas covered the countries in which studies are undertaken, its relation with determinants and its ...

  12. Organizing an Essay

    Organizing an Essay. Organizing ideas and information clearly and logically in an essay, so that readers will understand and be able to follow the writer's thinking, is an essential stage of the writing process, but one that often proves to be more difficult than it sounds. When people write, ideas tend to come out in whatever order they occur ...

  13. PDF A Brief Guide to the Elements of the Academic Essay

    Harvard College. Writing Program. roJeCT BrIeF gUIde SerIeSA Brief Guide to the Elements of the Academic Essayby Gordon HarveyGordon Harvey's "Ele. nts of the Academic Essay" provide a possible vocabulary for commenting on student writing. Instructors in Harvard College Writing Program tend to use some version of this vocabulary when ...

  14. Theories of Capital Structure (explained with examples)

    The capital structure decision can affect the value of the firm either by changing the expected earnings or the cost of capital or both. ADVERTISEMENTS: If average affects the cost of capital and the value of the firm, an optimum capital structure would be obtained at that combination of debt and equity that maximizes the total value of the ...

  15. PDF Strategies for Essay Writing

    Harvard College Writing Center 2 Tips for Reading an Assignment Prompt When you receive a paper assignment, your first step should be to read the assignment prompt carefully to make sure you understand what you are being asked to do. Sometimes your assignment will be open-ended ("write a paper about anything in the course that interests you").

  16. Structuring an essay

    Introduction. An essay introduction usually: clearly states the topic that will be the focus of the essay;; offers a preview of main aspects that will addressed, or the particular angle that will be taken in; and; clearly articulates the position that will be argued. This is known as the thesis statement.; Consider this introduction:

  17. Essay Writing: A Complete Guide for Students and Teachers

    Though students will most likely be familiar with the broad generic structure of essays, it is worth investing time to ensure they have a clear conception of how each part of the essay works, that is, of the exact nature of the task it performs. Let's review: Common Essay Structure. Introduction: Provides the reader with context for the essay ...

  18. Paragraph Structure: How to Write Strong Paragraphs

    Like other forms of writing, paragraphs follow a standard three-part structure with a beginning, middle, and end. These parts are the topic sentence, development and support, and conclusion. Topic sentences, also known as "paragraph leaders," introduce the main idea that the paragraph is about.

  19. The Beginner's Guide to Writing an Essay

    The essay writing process consists of three main stages: Preparation: Decide on your topic, do your research, and create an essay outline. Writing: Set out your argument in the introduction, develop it with evidence in the main body, and wrap it up with a conclusion. Revision: Check your essay on the content, organization, grammar, spelling ...

  20. Tips for Organizing Your Essay

    Strategy #2: Use subheadings, even if you remove them later. Scientific papers generally include standard subheadings to delineate different sections of the paper, including "introduction," "methods," and "discussion.". Even when you are not required to use subheadings, it can be helpful to put them into an early draft to help you ...

  21. How to Structure an Essay: The Blueprint of Effective Essays

    The 5 point structure to an essay includes: Introduction: Hook, background information, and thesis statement. Body Paragraph 1: First main point with supporting evidence. Body Paragraph 2: Second main point with supporting evidence. Body Paragraph 3: Third main point with supporting evidence.

  22. Example of a Great Essay

    An essay is a focused piece of writing that explains, argues, describes, or narrates. In high school, you may have to write many different types of essays to develop your writing skills. Academic essays at college level are usually argumentative : you develop a clear thesis about your topic and make a case for your position using evidence ...

  23. How to Make AI Writing Sound More Human

    See more tips on how to write an academic essay, including examples, best practices, and academic editing services. AI college admissions essay example (Common App Essay) AI-written admissions essay passage. Growing up in a small town, I always found solace in the pages of books.