Ask for Right Questions

Problem-Solving and Information on the Internet

Assignment 1

In the web page “SAP commits to invest $1-billion in tech startups”, the issue is whether or not the SAP SE can be success in its investment through its Sapphire Ventures. In the article, it mentions that Sapphire Ventures was among the top performing corporate investors in the information technology sector with 23 exits since 2011. Moreover, Sapphire Ventures scouts about 1000 potential deals a year and ends up investing in about 10. As well, SAP and Sapphire Ventures have very close information relationship. In conclusion, based on these reasons the SAP SE could most probably earn rewards through its investment.

In the web page “Why Canada’s borrowing binge will end badly”, the issue should be whether people should rely hardly on borrow binge or not. According to the article, it explains a term called “recency bias” in the field of behavioral finance, which indicated that people are looking at recent events and projecting them into the future indefinitely. However, this will not work all the time. For reasons, the article lists several statistics, for example, the credit-monitoring firm TransUnion said that more than 700,000 people would be financially stressed if rates went up by a puny quarter of a percentage point, and as many as one million would be affected if rates went up by a full point. In addition, the second-quarter data from Statscan show how deaf people are to warnings about the dangers of debt. In the worst three-month period since the recession, economic output fell by an annualized rate of 1.6 per cent. Also, the reaction of employers to this economic dip can be seen in the fact that income growth was weaker than normal in the second quarter and consumers barely flinched. In conclusion, people should be aware the dangers of debt and try to reducing debt.