Chapter 4 - Revenue Recognition

http://finance.yahoo.com/news/RadioShack-4thqtr-profit-apf-1866215015.html?x=0&.v=3

Summary:

RadioShack is an American electronics company in the United States as well as other parts of the world. They focus in home electronics, computers, and cell phones. T-Mobile USA has partnered with RadioShack to provide cell phone plans and prepaid phones and airtime. The article talks about RadioShack having positive revenue in the fourth quarter of 2009. Their revenue increased to $1.32 billion or 4.7 percent. The cause of that revenue increase is because RadioShack has included T-Mobile into their phone carrier which specializes in Sprint Nextel cell phone plans and prepaid phones with airtime. On top of their revenue from T-Mobile, they also had stores in Mexico generating profit.

Reflection:

RadioShack has expanded their products and services notably T-Mobile the phone carrier. Also they increased activity in international level like in Mexico. Investors look for good news in the stock market, but with this revenue increase it does not necessarily mean immediate stock prices to go up. Sometimes you never know what the stock market will do even though with the $1.32 billion profit. The article stated that shares of RadioShack fell 93 cents, or 4.5 percent, to $19.70. Good business strategies for RadioShack was having international operations in Mexico and also expanding their services with the phone carrier T-Mobile.

Personal Reflection:

I think that RadioShack’s shares should have gone up with their $1.32 billion or 4.7 percent increase in revenue, but it resulted to drop their stocks 93 cents. Although you can see that RadioShack made a lot of profit through their product and services, they still had a decrease in stocks. The stock market is unpredictable and may change anytime in any direction. Having international operations in Mexico and expanding their cell phone service with T-Mobile definitely was a good business strategy to generate more revenue. They may have to find other strategies in the future to boost up their revenue because an increase in sales of cell phones this quarter does not mean it will do the same in the next.

Chapter 1 Article

http://www.vancouversun.com/news/fall+they+called+Jewish+bill/1897136/story.html

Summary:

Bernie Madoff was caught of being apart of a $65 billion Ponzi scheme. People didn't really believe Madoff was a thief to the $65 billion Ponzi scheme. Famous people like director Steven Spielberg and Nobel Prize winner and Holocaust survivor Elie Wiesel were victims of the scam. Madoff ended up with a 150 year prison sentence and he is now 71 years old. There were two books that were published named "Too Good to Be True" by Erin Arvedlund and "Betrayal: The Life and Lies of Bernie Madoff" by Andrew Kirtzman. They both thought that Madoff's actions were shady and they didn't know when he started.

Connections:

There were many connections between chapter 1 and Madoff. Madoff fooled the investors so that his Ponzi scheme would work successfully. He used new investor's money to pay back the old ones. He would have been a very successful business man if he actually didn't scam his way. He would have become the chairman of NASDAQ (National Association of Securities Dealers Automated Quotations) which is an American stock exchange that has more trading volume per hour than any other stock exchange in the world. It is said that he would be taking over three floors in the Lipstick Building located in Manhattan.

Personal Reflection:

I think that what Madoff did was not right. The $65 billion Ponzi scheme was just too much and he deserved where he is now. Being 71 years old and a 150 year prison sentence pretty much means he would be spending the rest of his life in jail. Cheating famous people like Steven Spielberg and Elie Weasel was pretty bad since they probably have a lot of money to sue Madoff. The books said that Madoff tried scamming a high school English teacher by giving him an oral report. It also mentioned that ethnicity, religion, class, and international borders might have been another factor to why he did that. Apparently a number of his victims were Jewish which is how he got the nickname "the Jewish T Bill".

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