http://www.canada.com/business/fp/prices+rise+seven+week+high+above/2096046/story.html
Summary:
Oil prices are being constantly changed throughout the year. It has been raised to US$74 a barrel. Demands for oil have also been increasing dramatically. During the year, oil prices have risen 65% but still haven’t broken a 2009 high of US$75 a barrel. Cold weather in the States has also helped boost oil prices. Another thing that affects oil prices is when the U.S. dollar lowers and becomes closer to the other currencies.
Connection:
Oil pricing is a major concern to not just consumers, but also to businesses. There are a lot of businesses that require automobiles. These automobiles require oil to operate and therefore concern the business. Oil is considered as an expense to a company. If the oil prices increase, it would cause the company to pay a lot more. On the other hand, if they have to pay more, they can claim more tax in return. The increase in oil prices may also affect the net profit of a company. It may lower the company’s profit if the increase in oil prices is outrages. Due to the increase in oil prices, many companies have decreased their numbers of automobiles. By selling off automobiles (asset), it allows companies to gain cash (asset) to pay off the increase in oil prices.
Reflection:
I think that the rise in oil pricing has been very overwhelming for the past year. I would say it can and will rise even higher if we don't hold on to our natural resources. Today, a lot of people still haven't realized how important our natural resources are and how important it is to preserve them. How many people are demanding for oil? Well ask yourself, how many people have a car at home? Majority of the people you think about will have a car or two. Are they really necessary? Say if you were at home and wanted to grab something to eat two blocks, would you walk there or drive there? A lot of people would probably say that they would walk, but in reality they would just end up driving. I think that we, as humans, are depending on technology too much. We are getting too lazy! The main reason for the rise in the oil prices are nothing else but ourselves.
Tuesday, October 13, 2009
Wednesday, September 16, 2009
Chapter 1
http://www.cnbc.com/id/32549389
Summary
This article unfolds that the world's largest office supply retailer is going through a difficult time in its second-quarter fiscal period. Its profit dropped from $150.2 million (21 cents per share) to $92.4 million (13 cents per share). Not only is Staples going through troubles but rival Office Depot Inc. is also having a tough time with their second-quarter fiscal period. This is all caused by the recession because small businesses and ultimate consumers are trying to limit themselves from buying. Therefore, they cut down their supply amount and watching their wallet more carefully while buying. But this won't stop them from staying in the market place. Staples is ready to fight what is in front of them. Troubles like this won’t stop them from keeping it up.
Connection
This chapter is related to Financial Accounting - A Users Prospective because it mentions about shareholders, shares, and earnings. Shareholders are the owners of the corporations. To become a shareholder, you must purchase shares, which represents your ownership to the corporation. These shares also represent how much money is coming in, in other words, how much earnings you are making. Due to the recession shareholders of Staples have lost earnings from 21 cent per share to 13 cent per share. As you can see, because of the recession profits are decreasing. This isn’t just for Staples but is also happening to a lot of other companies. This is because consumers are trying to save up and limit their spending.
Reflection
I think that choosing which corporation we invest in is very important. We don't just look at how much profit the corporation is making, but we also have to look at how well they are doing. A company that is earning a lot of profit doesn't necessarily mean that it is a successful one. An excellent corporation should have good customer service, good reputation, and other characteristics. Corporations are not always like how they look. We have to look at the companies in more dept than just the picture. We also have to make sure that we don't invest in a business that has a terrifying credit rating. Another thing is companies shouldn’t only be all about profit. I think a true strong company is one that strives to make their consumers delightful. Lastly, I think that it is important to put an effort into finding a corporation that we can trust. But all in all, I think that being a shareholder can be a pretty tough job. Even though we don't really do much but watch out for the stock market.
Summary
This article unfolds that the world's largest office supply retailer is going through a difficult time in its second-quarter fiscal period. Its profit dropped from $150.2 million (21 cents per share) to $92.4 million (13 cents per share). Not only is Staples going through troubles but rival Office Depot Inc. is also having a tough time with their second-quarter fiscal period. This is all caused by the recession because small businesses and ultimate consumers are trying to limit themselves from buying. Therefore, they cut down their supply amount and watching their wallet more carefully while buying. But this won't stop them from staying in the market place. Staples is ready to fight what is in front of them. Troubles like this won’t stop them from keeping it up.
Connection
This chapter is related to Financial Accounting - A Users Prospective because it mentions about shareholders, shares, and earnings. Shareholders are the owners of the corporations. To become a shareholder, you must purchase shares, which represents your ownership to the corporation. These shares also represent how much money is coming in, in other words, how much earnings you are making. Due to the recession shareholders of Staples have lost earnings from 21 cent per share to 13 cent per share. As you can see, because of the recession profits are decreasing. This isn’t just for Staples but is also happening to a lot of other companies. This is because consumers are trying to save up and limit their spending.
Reflection
I think that choosing which corporation we invest in is very important. We don't just look at how much profit the corporation is making, but we also have to look at how well they are doing. A company that is earning a lot of profit doesn't necessarily mean that it is a successful one. An excellent corporation should have good customer service, good reputation, and other characteristics. Corporations are not always like how they look. We have to look at the companies in more dept than just the picture. We also have to make sure that we don't invest in a business that has a terrifying credit rating. Another thing is companies shouldn’t only be all about profit. I think a true strong company is one that strives to make their consumers delightful. Lastly, I think that it is important to put an effort into finding a corporation that we can trust. But all in all, I think that being a shareholder can be a pretty tough job. Even though we don't really do much but watch out for the stock market.
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