Guillermo’s Furniture Store Concepts
March 19, 2013
Guillermo Furniture Store Concepts Paper
First week (1st) individual assignment was write no more than 800 word paper explaining the finance concepts found in the Guillermo Furniture Store Concepts Paper and relate finance concepts to the context of the scenario. Following Finances Concepts and relationship with scenario assigned.
Finances are the studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects.
Finance is defined as the set ...view middle of the document...
2 Following some Finance components that I understand Guillermo contemplate to run his business:
Investment decisions involving the acquisition of assets for short or long term. At first these decisions are evaluated individually. An example would be the purchase or not a machine. In this type of analysis takes into account the implications of the investment concerned about the rest of the company's investments.
According to the Scenario Guillermo's competition uses for production computer controlled laser lathe producing exact cuts in wood. Highly automated, the plant uses very little labor as robots even perform the precise movement and assembly functions. Guillermo understand that the cost of the technology is immense but contemplates to make some investment. Today our way of life has changed greatly, because the influence of new technologies. For Guillermo technology represent the reduction in the labor needed for production. This production can move between products quickly, and it runs on a 24-hour basis, as the shift-differentials are more than offset by the reduction in labor.
Production costs also called operating costs are the expenses required to maintain a project, process line or a working computer. This means that the economic fortunes of a company is associated with: income and production cost of goods sold. While income, particularly sales revenue, is associated with the marketing sector of the business, the cost of production is closely related to technology.
In the case of Guillermo acquiring...