WEBVTT 1 00:00:00.300 --> 00:00:03.900 Hello now we are ready to create the corporation 2 00:00:03.900 --> 00:00:06.400 in August so that we can start the 3 00:00:06.400 --> 00:00:07.400 activity in September. 4 00:00:08.200 --> 00:00:12.100 We decided to select the joint stock cooperation 5 00:00:11.100 --> 00:00:15.100 as a legal environment, which will 6 00:00:14.100 --> 00:00:17.700 allow us to grow and open 7 00:00:17.700 --> 00:00:20.400 the capital a little bit later. So far. 8 00:00:20.400 --> 00:00:24.000 The initial capital is $10,000. We create 9 00:00:23.500 --> 00:00:26.400 1,000 shares the power 10 00:00:26.400 --> 00:00:29.500 value per share is $10. No problem. Now, 11 00:00:29.500 --> 00:00:31.300 what is very important to understand? 12 00:00:32.200 --> 00:00:36.300 Is that each and every share is an ownership, right? 13 00:00:35.300 --> 00:00:38.500 The shareholders are the 14 00:00:38.500 --> 00:00:41.600 co-owners of the company now when 15 00:00:41.600 --> 00:00:44.800 you have an ownership, right, you have all the 16 00:00:44.800 --> 00:00:47.700 rights which are associated with this ownership. 17 00:00:48.300 --> 00:00:51.300 You have a right on the value of the company because you 18 00:00:51.300 --> 00:00:54.800 are a co-owner. You have a right on the profits 19 00:00:54.800 --> 00:00:57.400 which are generated by the company. And 20 00:00:57.400 --> 00:01:00.300 then you have a dividend right and you have the right 21 00:01:00.300 --> 00:01:03.300 to be informed of what is happening in 22 00:01:03.300 --> 00:01:06.300 the company. Of course, there are limitations because of 23 00:01:06.300 --> 00:01:09.900 confidentiality, but it's information right is absolutely different. 24 00:01:11.100 --> 00:01:14.300 To start with I keep 100% of the shares. 25 00:01:14.300 --> 00:01:16.900 I am the only and unique owner. 26 00:01:17.800 --> 00:01:20.200 Now the question is why this figure of 27 00:01:20.500 --> 00:01:24.300 $10,000? Well, it's about business creation. 28 00:01:23.300 --> 00:01:26.700 So that will be some risk and 29 00:01:26.700 --> 00:01:29.300 fluctuations. I am a cautious person. I want 30 00:01:29.300 --> 00:01:32.200 to have a kind of financial buffer and maybe I 31 00:01:32.200 --> 00:01:35.800 will need these funds to finance my growth so initially, 32 00:01:35.800 --> 00:01:38.500 what do I do? I simply write a check 33 00:01:38.500 --> 00:01:41.400 of 10,000 which I put in 34 00:01:41.400 --> 00:01:44.400 the bank account of the company and that's 35 00:01:44.400 --> 00:01:45.400 it for the creation. 36 00:01:46.400 --> 00:01:49.900 Now the opening balancing the first balance 37 00:01:49.900 --> 00:01:52.900 sheet of the life of the company asses where 38 00:01:52.900 --> 00:01:55.800 the company stands at the very beginning and 39 00:01:55.800 --> 00:01:58.500 tries to give an answer to two question. How much 40 00:01:58.500 --> 00:02:01.900 did I invest as a shareholder owner 41 00:02:01.900 --> 00:02:04.900 of a company? And what is my current cash 42 00:02:04.900 --> 00:02:05.600 situation? 43 00:02:06.600 --> 00:02:09.100 You will have these two questions at the end of 44 00:02:09.100 --> 00:02:12.600 each and every month during this first 45 00:02:12.600 --> 00:02:15.200 module assets is what is 46 00:02:15.200 --> 00:02:18.600 owned by the company and what is owned by the company is it's 47 00:02:18.600 --> 00:02:22.200 bank account with cash 10,000 Equity is 48 00:02:21.200 --> 00:02:24.100 what I invested. I invested in 49 00:02:24.100 --> 00:02:28.000 capital 10,000 and this is my initial opening 50 00:02:27.400 --> 00:02:28.800 balance sheet. 51 00:02:29.400 --> 00:02:32.800 In terms of knowledge. The first observation is 52 00:02:32.800 --> 00:02:35.800 at the balance sheet simply balances, which 53 00:02:35.800 --> 00:02:38.200 is not a surprise. It's a very 54 00:02:38.200 --> 00:02:41.400 mechanical process. It starts very simply 55 00:02:41.400 --> 00:02:44.600 and you will understand that when the balance it becomes 56 00:02:44.600 --> 00:02:48.600 very complex. It will still mechanically balance. 57 00:02:49.600 --> 00:02:52.800 In terms of terminology the assets is 58 00:02:52.800 --> 00:02:55.400 exactly all the items, which are 59 00:02:55.400 --> 00:02:57.000 owned by the company. 60 00:02:57.900 --> 00:03:00.100 And the equity is what has been 61 00:03:00.100 --> 00:03:03.600 invested by the shareholders liabilities will 62 00:03:03.600 --> 00:03:06.000 come quite soon and it is 63 00:03:06.700 --> 00:03:10.200 what is owed to other external stakeholders. 64 00:03:11.300 --> 00:03:14.100 But you understand that in this terminology, you have 65 00:03:14.100 --> 00:03:18.000 a kind of legal perspective first. Accounting 66 00:03:17.200 --> 00:03:21.200 is first a legal obligation. And 67 00:03:20.200 --> 00:03:23.400 for the lawyers a question is what 68 00:03:23.400 --> 00:03:26.100 happens if you terminate the activity of the 69 00:03:26.100 --> 00:03:29.600 company your liquid at the company simply you 70 00:03:29.600 --> 00:03:32.700 sell the assets then you redeem your 71 00:03:32.700 --> 00:03:35.300 repair is a liabilities and what is 72 00:03:35.300 --> 00:03:38.900 left is located to the equity owners. 73 00:03:38.900 --> 00:03:41.700 That's the legal perspective for US finals 74 00:03:41.700 --> 00:03:44.700 people. Of course, the legal perspective is important, but we 75 00:03:44.700 --> 00:03:47.400 want to complement that by something which is in our 76 00:03:47.400 --> 00:03:50.500 opinion much more important. The financial 77 00:03:50.500 --> 00:03:53.300 perspective is where the Monet comes from the 78 00:03:53.300 --> 00:03:57.000 sources of on the origin of the financing and 79 00:03:56.600 --> 00:03:59.400 what we bought what we 80 00:03:59.400 --> 00:04:02.600 invested in the activity the users of 81 00:04:02.600 --> 00:04:05.400 phones. So for US finals people, it's about 82 00:04:05.400 --> 00:04:07.700 sources and users of phones. 83 00:04:08.500 --> 00:04:11.300 The company's now ready to operate. We have a 84 00:04:11.300 --> 00:04:14.800 legal entity. We have created a company. We have identified 85 00:04:14.800 --> 00:04:17.500 market and a supplier. We are ready 86 00:04:17.500 --> 00:04:20.000 to generate our first sales in September.