RUNNING HEAD: Guillermo Furniture Store 1

Concepts

Guillermo Furniture Store Concepts

FIN/571- Corporate Finance

April 9, 2011

University of Phoenix

Dr. Kent Moser

Guillermo Furniture Store Concepts

 RUNNING HEAD: Guillermo Furniture Store 2
Concepts

It is imperative for all business owners to understand the principles of corporate finance.

Knowing this information allows them to make better and informed decisions which assist in the

success of the business. Guillermo Navallez made furniture for years near his Sonoran home.

The area had a good supply of timber for the variety of tables and chairs produced by his

company. Labor was also relatively inexpensive. In addition, he priced his handcrafted products

at a slight premium for the quality they represented. All of that was true until late in the 1990s

when two forces combined to cause a large dent in his business. Guillermo watched his profit

margins shrink as prices fell and costs rose (Guillermo Furniture Store Scenario, 2011). Experts

will assist Guillermo understand the finance concepts found in the readings and how some of

these principles relate to his business dilemma.

 RUNNING HEAD: Guillermo Furniture Store 3
Concepts

References

Emery, Finnerty, Stowe. (2007). Corporate Financial Management (3rd ed.). New Jersey:

Pearson-Prentice Hall.

University of Phoenix. (2010). Guillermo Furniture Store Scenario. Retrieved from University of

Phoenix, April 9, 2011, from University of Phoenix, resource, FIN/571 Economics

Website.