FIRM
Updated: 2/22/2021
FIRM

Storyboard Text

  • Ann wants to create a business in which she’s going to sell custom shirts. She is deciding what legal form to choose: an “empresa individual” or a “sociedad”.
  • At the beginning I think I won't generate much money...
  • I don't have many resources.
  • It will be difficult to have important debts.
  • Have you got a high capital?
  • Do you think you will be at risk of getting into debt?
  • How much do you think you're going to earn?
  • Then, I recommend you to choose an “empresa individual” because you are the only entrepreneur of your business, you don’t have a minimum capital nor transmission of ownership, and you have to pay the IRPF, which grows fairly the more income you have. 
  • I don’t have enough money to pay for a t-shirt printing machine, so I have decided to finance in a long-term period, borrowed found and external source type of financing: Leasing.
  • Ann decides to follow her friend's advice and she opens a microenterprise in her city.
  • The leasing enterprise will buy the machine and rent it to me.
  • .
  • ANN'S T-SHIRTS
  • .
  • The only inconvenience is that, finally, I will be paying a higher amount of money for the machine.
  • The advantages are that I don't have to find a large cash to purchase it to start with, and the leasing company will care and maintain the machine.
  • VS
  • .
  • In the end, Ann financed in leasing. The supplier of Ann’s business came today…
  • I will pay now then. Thank you.
  • Can I get a trade credit?
  • Sure! You can pay next month. However, if you pay today, you are going to have a discount of the 5% of the total price.
  • You have ordered 1.000 basic t-shirts. It’s 3.000$ in total.
  • Ann wants to know the profits that her firm has earned last month.
  • I've sold 1.000 t-shirts, each one for 10$. I bought them for 3.000$ in total and I spent 500$ of rent and other fixed costs. The revenue would be 10.000$ and the total costs would be 3.500$. If I’m not wrong... I’ve earned 6.500$!
  • . .