Daily Archives: September 29, 2014

A business almost always focuses on making things easier and sometimes entails a solution for a problem or necessity people do not know they have. When releasing a new product firms try to be innovative, different and sometimes exclusive… In this sense, brands such as Michael Kors or Apple act like a luxury since they sell expensive but great-quality products to public. When I learned about auctions sites online, I was thrilled by this idea of restructuring the market.

Who would not invest little money knowing that there are chances to get a high quality product? Sites like eBid, ePier and QuiBids satisfy customers by this feature and; in the other hand, they earn the thousands bids people invest. 

An interesting way of doing business for sure…

After being quite impressed by this business idea I asked myself whether a lot of people lose money when bidding… Apparently for some websites like QuiBids, offering unsuccessful consumers the opportunity to buy the item at the retail price is enough comfort. However, the big percentage of losers that is never shared in companies such as QuiBids brought lawsuits due to this keeping of information.

I find these retailers to be an innovative way of doing business. However, I strongly believe that these companies have the responsibility to constantly go over their ethical values to keep the good atmosphere of entertainment.

Based on: http://forbesnetwealthbuilder.com/quibids-review-a-z-of-the-best-penny-auction-website/

http://online-auction-sites.toptenreviews.com

To be the center of regulation for most activities developed in the country, the government is expected to have a good control over its own conduct an plans.

 However, this is not what is happening  in the Accounting side of the story. Due to some budgetary malfeasance, the interest rates in the student loans doubled in the United States. In addition, the federal government is supposed to earn tens of billions of dollars in profit from the student loan program. What’s the story behind it? The government budgets for this moneylending by taking the initial cost of the loan and subtracting all the projected repayments to create a single cost figure. In this sense, the expected revenue is almost never achieved and therefore taxpayers are the ones covering the difference.

The majority of students in the US need a student loan in order to pursue further education.

 If I were a US citizen and had acknowledge this situation I would be very disappointed by this thoughtlessness  that government appears to have towards the economy of people. Thus, in the government accounting, in contrast with the private sector, the risk of component of the marker price is disregarded. If “Fair Value” accounting were brought into play the price of risk would be incorporated into cost estimates and therefore there would not be any budgetary malfeasance upon expected assets.

 I believe that a government biggest aspiration should be to give a comfortable and honest environment for citizens by letting clear how their money is spent. Therefore, the incorporation of Fair Value Accounting should be considered.

Based on: http://www.forbes.com/sites/realspin/2013/06/20/how-government-uses-accounting-tricks-to-hide-the-student-loan-swindle/

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