Chapter 14 Article

Ch14 Article
http://news.bbc.co.uk/1/hi/business/7746002.stm

Summary
This article is about the risks of having an online bank account. In the article, it points out that there is a flaw inside HSBC’s online bank account system. With this flaw, fraudsters could use software to capture the keystrokes made on a particular computer to break into the individual account of a HSBC’s customer. It also illustrates the phone scam and bogus account scam. However, the banks are struggling with those fraudsters with new technologies. For example, the Dutch bank ABN establishes the biometric voice verification system in phone banking. This can verify the identity of the customer.
Connection
In this chapter, it mentions about bank accounts in section 1. I think what the book is missing is the online bank account. It is a service that can provide online money transaction. Business can transfer money without writing a cheque and check the bank statements. It is basically like a normal bank account, but the main difference is the person is dealing with data instead of money.
This article shows some of the possible risks of having an online bank account and what the bankers are doing with those risks.
Reflection
When more and more businesses are using computers, online banking becomes more popular. Money transfer can be made without going to the bank. Instead, higher risk is taken in an online banking service. Therefore, a better banker is needed. Also, business should beware of the scams and do everything that can protect the money. Like make sure the website is correct, update the computer’s security system, do not give any information easily and check the record often. In my opinion, the best way to prevent losing money is to use the normal bank account.

Chapter 12 Article

Article

Summary

The article is about how the discounts on cash payment affect the gasoline retailers and customers. Because of the increase of the price of gas, the gasoline retailers are earning less money from the sale of gas. It is not only because of the increasing price of gas, but also the charge of the credit card fees. Therefore, sometimes gasoline retailers have to pay the amount of credit card fee that is equal or more than the sales profit. It also tells that the fee of debit card is lower than credit card. The cash discount is welcome by a lot of customers.

Connection

In the textbook, it mentions about why the companies allow discount on payment. It is because they want their customers pay earlier or on time. However, in this case, it is using the discount differently. It is use to attract customers and avoid the payment of credit card fees. In other words, it is use to increase the profit from the sale. Although the two cases in the article and the textbook look different, they both have the same purpose. They are both trying to bring the business advantage.

Reflection

This is quite impressive for me. I never think about being a gasoline retailer will be that difficult with the increasing price of gasoline. The retailer in the article loses money in every gallon of gas he has sold. That means the price of gasoline is not only affects the customers, but many other groups of people or businesses. Under such a situation, business can only survive with new policies. In addition, preventing unnecessary expenses is especially important to a business. It is because when a business is getting a very low income from sales, saving money is a very good way to bring the business profit.

Chapter 11 Article

Article
http://jrantonini.wordpress.com/2007/08/22/strategies-to-increase-net-income/

Summary
This is an article that teaches people how to increase their net income. In the article, the author illustrates two examples. The first example is about a client who rents spaces at a large vendor market, and then uses its by-product to earn three times as much as its renting business. The second example is a story of a divorced couple. They both wanted to have a successful divorce; therefore, the wife went to finish her college degree. When the time they divorced, the wife then could go back to work again.

Connection
The connection between the article and chapter 11 is "how to increase the income". In the last section of the chapter, the text shows us many ways to increase the income. For examples: reduce the cost, increase the selling price and extend the days of selling. As what the article teaches, we can also use some by-products to get even more profit. As the article mentions in the second example, prepare for the in coming event can also help the business to gain more income.

Reflection
This article gives me some new thoughts about increasing income. Not only make profit at the things a business already has, also try to make new income sources. Making preparation is also very important for a business. Because it is necessary for a business to know the current of the market and the fiscal condition changes around the world. That could profit the business by making correct decision and purchasing proper goods.