...Credit VS Cash Although both credit and cash differ in some ways, they are equally important and their functionally has aided in making payments quick and easy in today’s fast paced society. The differences are huge, but they can impact people’s lives in different ways. While in today’s world 73% of people use less cash than ten years ago, this could become a bigger problem in the world. Many people wonder why using a card is safer than using cash? Most of them do not like carrying around a lot of cash due to the fear of losing it. Once it is lost, there is no way to replace it. Cash cannot be replaced; on the contrary, if one loses their credit card they are protected. If a credit card is lost or stolen one can easily put a hold on the account. If someone besides the owner uses it, the credit card company will investigate it and the most that is required is to pay a minimal amount, if that. Carrying cash is often not an option when making large purchases because of the possibility of losing it or the possibility of being robbed. Credit cards offer more security and it is much safer and easier to use a credit card. Very few businesses offer a reward while paying with cash. However when one pays with a credit card, the company normally offers the buyer a rewards program where they can earn something back on the purchases they make. Credit card companies offer a “Cash-Back Card” which allows the user to receive cash back at the end of the month when a certain amount of...
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...Costco and American Express terminate a 16 year old business partnership Costco, a wholesale retail giant and American Express, a financial services corporation, recently announced that they would be ending their contract. According to the terms of their agreement, American Express was the sole credit card accepted at Costco. Additionally, American Express and Costco had issued a co-branded TrueEarnings credit card, which could also be used at other stores. After March 31, 2016, customers will no longer be able to use American Express credit cards in Costco. The TrueEarnings credit card will also be discontinued [1]. From a marketing perspective, this could have several consequences for both firms. What are the implications for each company's brand with this decision? American Express’s brand image has been adversely affected with the termination of its contract with Costco. There are several factors that contribute to the same. • Low confidence of Costco in American Express’s brand: The termination of the contract, albeit from a financial perspective, implies that the exclusivity that American Express had commanded has ceased to exist. Costco clearly sees no benefit in being associated with American Express’s brand, which may result in declining confidence among American Express customers, particularly those associated with the TrueEarnings card. • Declining status symbol: An erstwhile force in the credit card industry, American Express currently faces stiff...
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...An apartment is a self contained housing unit that occupies a part of the building (Bevan 2008. p.53). An apartment is valued by its structure. Apartments may possibly be possessed or rented by tenants. In some countries like the US apartment dwellers own the apartment and share the ownership of their public space. Hancock (2008) indicates that the largest acquirement people will always make in their life is buying of a home. It is to this date considered as the ‘American dream’ up to this date. The income tax code too provides advantages to home ownership. The considerations for renting an apartment are the same to those of buying a house. Majority of people consider owning a house to be worthwhile the model, age and design of the house notwithstanding. The option to either buy a house or to rent an apartment depends on personal preferences. Unlike when buying a vehicle, buying a car takes a long process (p.129). (Bevan 2008. p.53) explains that home owner take added care to their homes than renters, they remain in their homes longer than those who have rented homes. He reports that research shows home owners to report a high self-esteem than renters. Other than psychological comfort owning a home can be an option of tapping into house equity when emergencies arise. All the advantages of ownership can be lost once the owner gets difficulty meeting mortgage payments. Bevan (2008) further indicates that sometimes it may last for an over a decade to own a home. He indicates...
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...Are Debtors Digging Their Own Graves? Who Is At Fault For Credit Card Debts? Americans have become more and more dependent on credit cards, a rapidly growing issue. Although some may disagree, the problem with the credit card industry is not the creditors. It is actually the cardholders. The fault lies within the consumers that do not fully understand their financial circumstances therefore, spending beyond their ability to repay their debts. Having a line of credit should be a convenience, not a must. Reliance: Credit cards have become a necessary part of our everyday lives that we all have and use at some point. However, it is mind-boggling to think that many will use credit to make purchases knowing they cannot afford it. "Even as...
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...agency which controls the regulation. Explain why this agency and your proposed regulation interests you (briefly). Will this proposed regulation affect you or the business in which you are working? If so, how? In the midst of a weakened global economy cause largely by an avoidable housing crisis, financial regulations inevitably have an impact on us all. Decisions made by agencies such as the Department of Treasury, Federal Reserve, Bureau of Consumer Financial Protection, and the Federal Housing Finance Agency have the power to directly impact our daily lives much more than other agencies which is essentially the reason for my interest in such a regulation. Also, as a young American looking to own a home in the near future, this regulation has the ability to impact my ability to obtain financing. Beyond merely being a part of the American dream, home buying and the housing market is an essential part of every society’s economy. Describe the proposal/change. Nearly 4 decades after being established the Trust in Lending Act (TILA) also commonly referred to as regulation Z has undergone a number of amendments. The most current changes are to make the guidelines in which a consumer secures credit for the purchase of a home stricter. The change comes as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act which was signed into law on July 21, 2010. The act provides strict guidelines to creditors extending credit to consumers of high risk for the purpose of...
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...author on page 141, winning is a big concern in the life of sports and life in general. The saying is “winning isn’t everything”, but in sports and to some people it is everything. Any sports contest or in life, there will always be a winner and a loser. Fans need to realize their team cannot win every single game. If that was the case, the team would be perfect and no one is perfect. Being a sports fan and an athlete, winning is bittersweet, but sometimes, everyone needs to lose in order to learn from their mistakes and to become a better athlete. I think sports fans who never played a sport, do not understand the true meaning of winning and losing. They need to realize no athlete or team is perfect. They never experienced the feelings that come with winning and losing. If they did, then they could better relate with their sports teams and favorite athletes. In the section, Professional Context, pages 143 and 144, discusses the coach’s role in winning and losing. Sociologist Harry Edwards quoted, “In American society, it is commonly accepted that the success or failure of an athletic unit depends almost entirely upon the competence or incompetence of its coach.” (Llewellyn, p. 143). I agree and disagree with this quote because it can go both ways. A coach should set the tone and example of how the team should act and play, but at the same time, it is up to the athlete to put in the hard work and dedication to the game and team. A team’s success does not...
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...argues that factors such as the economic structure and capitalism produce crime and that those with the best resources make rules and laws which plays a role in why the upper class has the means to hide their crime, like in Dorm Room Dealers. Minorities suffer from this system more so than whites, rich or poor. African Americans are disproportionately represented in poverty, because in America, blacks were set up to fail from the beginning. African Americans were pushed into the inner cities and highways were built to benefit whites in the suburbs and further separate the races. This was not done only to segregate, but also to form a cycle of poverty and crime within the black...
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...Why you lost the sale/How to keep a customer In order for a salesperson to be a good one (and make sales), they must know the customers personality, partner with the customer, know what they want; anything that will make the customer feel special in their own way and not just a number in your sales line. In chapter one we discussed ABCS, Analyse needs, present product Benefits, gain Commitment, and Service. This method is used to build long term relationships. In the article it says how many salespersons confuse or put the blame on why they may have lost a sale, but they are wrong. Below I have listed a couple reasonings the article has given and information related from the book, compaired to real life examples from my perspective. • The customer was loyal to someone else, lack of engagement. In my opinion, you have to be better at what you do in order to win over the loyalty of a customer. Make your product/deals/benefits more appealing to the customer. For example, create a rewards program. American Express has an extremely high interest rate on their credit cards, but I prefer teir service because they get me what I need when I need it. If I lose a card I get a new one the next day, if I have my card stolen they do not charge me for the costs. On the other hand, other credit cards you have to wait 7-10 business days for your replacement card, you are responsible for stolen costs, but the interest rate is less than have of American Express. To me, their benefits are greater...
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...“Primary Documents in…”). Interesting, almost 149 years later, and with many Americans in debt today, the above words, can only suggest one thing; perhaps slavery or involuntary servitude is not dead but has only taken on a more disguised form. Although the above may be true, some believe debt is not slavery but a financial hardship brought about by one's own actions. With statics showing that the American public holds the bulk of the seventeen trillion dollar, deficits (The Debt to…); and that only 32 percent of Americans actually budget (Jacobe), one can come to believe this is true. That it is the public’s fault for not budgeting. For this reason, it is necessary that we diligently research and investigate past and present evidence to educate ourselves on the national debt crisis, so that we could shed some light on the root cause. First all, we will need to understand eccentric statistics on how many Americans are actually affected by debt today. According to Michael A. Fletcher of The Washingstonpost.com, three out five workers’ mortgages, credit card balances and installment loans are outpacing the amount of money they are able to save for retirement. In addition, Bill Fay of Debt.org acknowledges, that the more than 160 million Americans with credit cards have an average of three credit cards each, and on average, each household with a credit card carries more than $15,000 in credit...
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...Money and Why Do We Need It? Lesson Plan #1b: The Many Forms of Money Lesson Plan #1c: Plastic Payment Lesson Plan #1d: Smart Cards Lesson Plan #1e: Paying On the Internet Lesson Plan #2: An Experiment in Barter Exchange Lesson Plan #3: How Do You Pay? Lesson Plan #4: How Do You Pay? The Evolution of Money Instructor’s Note: The first five lesson plans (#1a through #1e) are designed as a modular set to be used together. They consist of a series of discussions covering various parts of the video. You may use them in several ways. One is to alternate between discussions and watching segments of the video. There are three pause points on the video. The discussions are designed to fit with these points. The first lesson (#1a) fits before the video begins; lessons #1b through #1d fit well at the three pause points; and the final one (#1e) fits best at the end of the video segment. Alternatively, the video can be viewed without interruption and the discussions divided between topics to be discussed before and after viewing. No continuity will be lost if some discussions are skipped. Because much of this material may be unfamiliar to teachers, each of the lessons has an extended presentation of background information for teachers. This information, along with additional materials from the references cited in the section called “For More Information,” should help you to be an informed discussion leader. Lesson Plan #1a: Grade Level: Time Required: What Is Money and Why Do We Need...
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...determine your score. Credit scoring isn't nearly so easy. Credit-scoring models use multivariate formulas. That basically means that the value of any given bit of information in your report might depend on other bits of information. To understand how this works, let's use a noncredit example. Say that your sister calls you to report that her husband is more than an hour late in coming home from work, and she asks if you think he's having an affair. To answer the question, you would need to review what you know about this man, including...
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...holding companies. The investment banking arena will never look the same again. Unfortunately the woe does not end here. American money-market fund the safest of safe investments has reported a loss (first time since 1994). If investors flee the money markets for treasuries, banks will lose funding and the contagion will suck in hedge funds and corporations. The recent turmoil has been blamed on the sub-prime mess. These relatively unregulated financial institutions’ greed has led to their downfall. What these “hedge-fund operators, leveraged buy-out boys and whiz-kid quants” have created is a financial Frankenstein. They have created loans for borrowers, who in real life do not qualify for them because of their poor credit ratings and low incomes. The risk of these loans have been passed on to investors around the world who are eager to buy securities carrying higher yields rather than those offered by safer investments such as US treasury bonds. According to an article by Knowledge @ Wharton “Mortgage-backed securities are created by assembling thousands of loans into bundles and creating a series of bonds that pass borrowers' principal and interest payments on to the bond owners. Typically, there is a series of bonds of increasing degrees of risk reflecting the borrowers' creditworthiness. The riskier bonds pay the highest yields but are the first to lose value if borrowers fall behind in payments.” The...
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...advantage or partisan spite. Republicans don’t seek to grind government to a halt. But they do aim to shrink its size by an amount currently beyond their institutional power in Washington, or popular support in the country, to achieve. Democrats don’t seek to cripple the nation with debt. But they do aim to preserve existing government programs without the ability, so far, to set levels of taxation commensurate with their cost. At bottom, it is the oldest philosophic battle of the American party system — pitting Democrats’ desire to use government to cushion market outcomes and equalize opportunity against Republicans’ desire to limit government and maximize individual liberty. And they are fighting it within a 21st-century political infrastructure that impedes compromise. Those government initiatives include Social Security from F.D.R.’s New Deal, Medicare and Medicaid from L.B.J.’s Great Society, and the 2010 national health care law. President Obama wants to keep them in roughly their current forms — even as the wave of baby boom retirements makes them costlier than ever. His Republican opponents are the philosophic heirs of conservatives who opposed their creation in the first place. Beginning in 2009, they gained fresh momentum in the quest to roll them back. While the Great Recession depressed tax revenues, the Wall Street bailout and stimulus bill gave Americans sticker shock; deficits topped $1 trillion annually. So in 2011,...
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...were the fourth largest investment bank in the nation and had been in existence since 1850. Their collapse was the result of being heavily invested in the subprime mortgage market that was a major factor in the US housing bubble. Prior to Lehman Brothers failure, there had already been a bailout by the US government of another large financial institution, Bear Stearns. The bailout involved the Federal Reserve insuring J.P. Morgan Chase against loses of up to $29 billion on the “ill liquid” assets it was obtaining in the purchase of Bear Stearns. This was the beginning of the bailout of the financial sector by the federal government and would reach unprecedented levels by the end of 2008. Ben Bernanke, the chairman of the Federal Reserve, justified these actions to Congress with an argument that had Bear Stearns been allowed to fail, the result would have been chaos and would not have been limited to the financial sector but would have resulted in extensive damage to the economy because of its effect on asset values and credit availability. Bernanke’s actions sent a message that federal authorities would step in and protect creditors of large financial institutions on the verge of failure and ultimately that they were “too big to fail” (MacEwan and Miller, p. 108 – 109). Subsequent to...
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...Corrie Sue Bettles Chapter One Business Now: Change Is the Only Constant Review Questions 1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? Industries, and technologies rise and the also fall sometimes. In the next decade most Industries and Technologies will accelerate with the common buying of things. 2. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit? Entrepreneurship plays a somewhat big thing for the economy. The employees of the entrepreneurship are the ones that gain from the success of the individual entrepreneurs. Other parties benefit by this, is because they get to take credit of what entrepreneurs should be getting. 3. When did American business begin to concentrate on customer needs? Why? The relationship era is when American businesses begin to concentrate on customer needs. That way they could keep building up their businesses by word of mouth from the customers. 4. How do nonprofit organizations compare to businesses? What role do nonprofits play in the economy? How do they interact with businesses? Nonprofit organizations play a critical role in the economy, often working hand in hand with businesses to improve the quanity of life in our society. Nonprofit organizations are still businesses in every other sense...
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