Guillermo Scenario: Finance Principles And Concepts Free Sample

Finance concepts are the basic principles that help us understand the common practices in finance as well as unique and uncommon difficult situations. In the context of the Guillermo scenario, the following finance principles and concepts can be identified:

The Principle of Two-Sided Transactions

The principle of Two-Sided Transactions recognizes that every transaction, the accounting system always records a debit and a credit, and that there is a party on each side of the transaction. Application of this principle leads to Total Assets being equal to the sum of Total Liabilities and Equity, as is the case on Guillermo’s financial statements. (Emery, Finnerty, & Stowe, 2007).

The Principle of Self-Interested Behavior

The Principle of Self-Interested Behavior states that, all other factors remaining constant, all parties to a financial transaction would choose the course of action that would be most financially beneficial to themselves. This is because most business interactions are transacted at “arm’s-length”. Getting the most good out of available resources is the primary consideration in such impersonal transactions. (Emery, Finnerty, & Stowe, 2007).

Guillermo Navallez had ready supply of timber and relatively inexpensive Labor for a long time, yet he prized his products at a premium. He was therefore trying to get the most benefit from his products.

The Principle of Incremental Benefits

The Principle of Incremental Benefits says that the value derived from choosing a particular alternative over other alternatives is determined by the unique benefit the decision provides, which can not be found when the other alternatives are chosen. Incremental expected cash flows can be used to quantify such incremental benefits. (Emery, Finnerty, & Stowe, 2007).

From Guillermo’s income statement, net income in the current scenario, under Hi-Tech, and as a broker have been compared, in a bid to determine these incremental benefits.

The Signaling Principle: Actions Convey Information

According to Emery, Finnerty, & Stowe, 2007, The Signaling Principle is another extension of the Principle of Self-Interested Behavior, which addresses the problem of asymmetric information. Assuming self-interested behavior, we can guess at the information or opinions behind the decisions we observe.

The low prices that the foreign competitor charged in the Guillermo scenario indicated that they were producing furniture at a much lower cost.

The Principle of Valuable Ideas

The Principle of Valuable Ideas states that value can be created by new products. It states that people with new ideas can use those ideas to create extraordinary positive value for themselves. The product’s value can further be enhanced by the ability to hold a patent granting the exclusive rights to produce a unique product. (Emery, Finnerty, & Stowe, 2007).

Guillermo sold his furniture at a higher price because of the value added by his patented coating process.

The Behavioral Principle

The Behavioral Principle states that sometimes firms wait to see what their peers are doing so as to learn or copy from them. (Emery, Finnerty, & Stowe, 2007).

This is a direct application of the Signaling Principle, which states that actions convey information, while the Behavioral Principle says, in essence, “Let’s try to use such information.” In the Guillermo scenario for example, most of the firms in the furniture industry were combining to form fewer but bigger firms.


Emery, D., Finnerty, J., & Stowe, J. (2007). Corporate Financial Management. Prentice Hall: Pearson Education, Inc.

The Importance Of Understanding Alzheimer’s Disease


Many diseases, conditions, and illnesses affect people globally every day, and it is virtually impossible to grasp the whole scale of dangers that medical issues pose to humanity. However, it is vital to be well-informed about a particular illness when newly diagnosed. The specific disease, widespread or not, also affects not only the patient, but their family, social circle, and, even nationwide, the society and economy. Alzheimer’s disease, as a significant cause of age-related dementia, is an acute example of how a condition can be detrimental to the patient individually and the society overall. The goal of this research paper is to analyze the importance of understanding Alzheimer’s disease for the general population, as well as the risks, mortality, and the effect of the illness socially, physically, and economically.

Personal Significance

This specific disorder is significant to me because it is widespread, yet majorly misunderstood illness that needs to be addressed more broadly and made accessible to the public. Given the tremendous effect that the disease has on a person’s life, it is essential for both the patient and their family and close ones to understand and adequately address Alzheimer’s disease. I am a person whose close family member was diagnosed with age-related dementia, and the lack of proper understanding of the issue was problematic for me and the patient himself. Therefore, I chose Alzheimer’s disease as a topic for my research that aims to educate newly diagnosed patients.

Symptoms, Effects, and Life Expectancy

To understand the severity of the medical condition, it is essential to address the way patients are affected by it. According to Bachurin, Gavrilova, Samsonova, Barreto, and Aliev (2018), the symptoms of Alzheimer’s disease are characterized by age-related dementia that initiates as a mild memory malfunction that gradually progresses to become detrimental to one’s everyday life. Failure in judgment, language impairment, visual deterioration, hallucinations and are some of the most common symptoms that patients with Alzheimer’s disease report in the early clinical stages of the condition.

However, the longer the person is left untreated, the more critical the symptoms become. Some of the more severe consequences of the illness include but are not limited to “seizures, hearing, visual, and voice loss, anxiety disorder, and the features of Parkinson’s disease” (Bachurin et al., 2018, p. 217). Given the seriousness of Alzheimer’s, it is necessary to understand and acknowledge the symptoms to recognize them in a potential patient before they cross the threshold of becoming too severe. Once diagnosed, the victim of the illness has a life expectancy of eight to ten years; however, depending on the intensity of the case, this term can be shortened to only one year. Therefore, considering the life-disrupting symptoms and the clinical duration of the condition is critical in the initial stages of diagnosis.

Relevance for the General Population: Facts and Figures

Understanding the science and the development of Alzheimer’s disease is essential for the general population because it is a widespread illness with drastic medical, social, and economic consequences. The segment of the population that is directly affected is people 60-65 years old. Article “2016 Alzheimer’s disease facts and figures” discovered that over five million people currently have Alzheimer’s disease in America, and this number is forecasted to at least double by 2050. According to Bird (2018), “someone in the country develops Alzheimer’s disease every 66 seconds, but by 2050, one new case of Alzheimer’s is expected to develop every 33 seconds” (p. 15). Even while the disease is not transmittable and does not pose a threat to others, its increasing spread and mortality rates are alarming. Currently, Alzheimer’s disease is one of five leading causes of death in the US (Bird, 2018). Although the condition may not directly affect some portion of the population, the gradual rise of Alzheimer’s disease nationwide guarantees that its effects are going to become even more detrimental.

The Cost of Alzheimer’s Disease: Economy and Society

Apart from the severe effect on the quality and length of living, Alzheimer’s disease also negatively influences the economic and social life of the patient and people around them. As it concerns the financial aspect of the issue, “in 2015, more than 15 million family members and other unpaid caregivers provided an estimated 18.1 billion hours of care to people with Alzheimer’s” (“2016 Alzheimer’s disease facts and figures,” 2016, p. 459). That has been proven to be one of the reasons for the social exclusion of caregivers and patients. As per the cost of the treatment, people with diagnosed Alzheimer’s spend twice as much money on medication than any other person of that age. More than that, their “Medicaid payments are 19 times as great” (“2016 Alzheimer’s disease facts and figures,” 2016, p. 459). The overall spending on the long-term care for patients with Alzheimer’s disease averages at $236 billion annually, causing many families to sacrifice their savings, retirement funds, and day-to-day essentials for financially sustaining their sick relatives (“2016 Alzheimer’s disease facts and figures,” 2016, p. 459). Thus, the condition can be regarded as costly and long-term spending.


In conclusion, understanding the facts and figures behind Alzheimer’s disease is essential for newly diagnosed patients, as well as their significant others. As a prevalent cause of age-related dementia, the illness gradually affects more people every year. Furthermore, it influences people and their social circles not only physically but also financially. Some of the readily available search terms for more information on the topic are “Alzheimer’s disease clinical description,” “Alzheimer’s disease background,” and “Economics of Alzheimer’s.”


  1. 2016 Alzheimer’s disease facts and figures. (2016). Alzheimer’s & Dementia, 12(4), 459-509. doi:10.1016/j.jalz.2016.03.001
  2. Bachurin, S. O., Gavrilova, S. I., Samsonova, A., Barreto, G. E., & Aliev, G. (2018). Mild cognitive impairment due to Alzheimer disease: Contemporary approaches to diagnostics and pharmacological intervention. Pharmacological Research, 129(1), 216-226. doi:10.1016/j.phrs.2017.11.021
  3. Bird, T. D. (2018). Alzheimer disease overview. GeneReviews, 2(3), 1-19.

Low English Proficiency And International Students’ Academic Success

There is an opinion that the biggest challenge that international students experience in UK universities is low English proficiency. I entirely agree with this argument because a lack of mastery in the English language prevents foreign students from gaining as much benefit from their studies as possible. Although some people may claim that financial problems are the most considerable barrier to international students’ success, this viewpoint is debatable. Even though overseas students usually pay higher tuition fees than home students, financial challenges pertain to both groups, whereas low English proficiency is a problem characteristic of foreign students. This essay will argue that insufficient knowledge of the English language hinders international students’ academic achievements because it leads to difficulties in understanding, communication, and relationship building.

International students, having no proficiency in the English language, struggle with getting a solid grasp of learning materials. Due to a lack of appropriate English skills, such students have problems with understanding the lectures they listen to and the assigned texts they read. For example, when listening to lectures, they may find it difficult to understand lecturers’ accents, unfamiliar specialized terms, or spontaneous styles of lecture delivery (Aizawa et al., 2020). When reading textbooks and other assigned sources, less proficient international students usually spend much time looking up unfamiliar words in a dictionary (Aizawa et al., 2020). The necessity to translate a lot of specialized terms into their native language to gain an insight into the subject decreases international students’ efficiency of learning. They not only miss part of information during the lectures but also have to devote time to overcoming language barriers, while other students may direct their efforts toward deepening their knowledge of the subject. As a result, overseas students with low levels of English mastery are likely to obtain less knowledge than their more proficient peers over the course of their university studies.

Foreign students with insufficient English language skills may also experience difficulties in communication in the classroom. They can struggle with formulating their thoughts in English both orally and in writing. For example, Chinese students in UK universities often keep silent and refrain from participating in class discussions because they cannot express themselves clearly and do not want to lose face in front of their peers (Zhu & O’Sullivan, 2020). Even if international students can easily communicate in English in their everyday life, they may face difficulties in the university setting due to the necessity to use specialized terminology in their responses. With low levels of English proficiency, overseas students also have issues with writing assignments. It is challenging for them to write long papers and adhere to stringent rules applied to academic tasks (Aizawa et al., 2020). In addition, less proficient international students struggle with using appropriate referencing and academic communication (Aizawa et al., 2020). Thus, overseas students’ inability to communicate in English effectively, especially in the university setting, prevents them from showing the best academic results.

Finally, international students who do not speak fluent English encounter problems with building relationships with their instructors and peers. Since English proficiency influences students’ ability to keep up with the curriculum, those with low levels of proficiency sometimes fall behind the group, which undermines their reputation in the university. For example, students who fear to speak up in front of the class because of a lack of confidence in their English skills usually have trouble interacting with professors (Zhu & O’Sullivan, 2020). Lecturers usually regard students’ silence as passivity and unwillingness to take part in the learning process (Zhu & O’Sullivan, 2020). As a result, their attitudes toward such students become unfavorable. Likewise, active students may not like their passive peers, which may lead to strained relationships in a group. Difficulties in studies because of language barriers and tense relationships with instructors and groupmates may cause international students to suffer from anxiety, which can further worsen their academic performance. Hence, low English proficiency affects overseas students’ success in university studies not only directly but also indirectly, by taking a toll on their relationships with others.

In conclusion, a lack of English mastery is the greatest issue that international students in UK higher education institutions are faced with. Inadequate competency in the English language does not allow foreign students to comprehend all the information they hear and read over the course of their studies. Furthermore, a low level of English proficiency prevents students from sharing their thoughts in the classroom, which makes them seem passive and unprepared for the class. Finally, international students’ passivity stemming from their lack of English knowledge undermines their relationships with lecturers and peers, leading to stress and anxiety. As evidenced by the reviewed negative consequences of low English proficiency, this problem has a large effect on students’ academic achievements. Therefore, it may be advised that international students should take preliminary English courses to improve their English language skills before entering a university in an English-speaking country. This way, they will be more prepared for their studies overseas and will be able to focus on obtaining relevant knowledge rather than overcoming language barriers.


Aizawa, I., Rose, H., Thompson, G., & Curle, S. (2020). Beyond the threshold: Exploring English language proficiency, linguistic challenges, and academic language skills of Japanese students in an English medium instruction programme. Language Teaching Research, 1-25.

Zhu, H., & O’Sullivan, H. (2020). Shhhh! Chinese students are studying quietly in the UK. Innovations in Education and Teaching International, 1-10.

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