NESA (Portuguese version)
In July 2013, Pedro Torca and Marisa Mercader travelled to Taxonia, a small European principality, to celebrate their recent graduation from the Executive MBA program. Pedro, who worked at an engineering firm, and Marisa, who was in charge of Project Finance at a bank, had been thinking about starting their own company for a long time, and they were constantly exploring business opportunities.
Taxonia, located between Sweden and Portugal, was known for its natural resources and its residents' awareness of sustainable economic activities. In this vein, the government and banks offered subsidies and loans to encourage the construction and operation of cogeneration plants. Residents and companies in Taxonia did not pay direct taxes and had managed to keep inflation close to zero over the past decade. Taxonia would certainly have been an enviable country, were it not for two disadvantages: the first was that temperatures remained extremely low almost all year long; and the second - no less important - was that the country only exists for the purpose of this exercise.
Taxonia, located between Sweden and Portugal, was known for its natural resources and its residents' awareness of sustainable economic activities. In this vein, the government and banks offered subsidies and loans to encourage the construction and operation of cogeneration plants. Residents and companies in Taxonia did not pay direct taxes and had managed to keep inflation close to zero over the past decade. Taxonia would certainly have been an enviable country, were it not for two disadvantages: the first was that temperatures remained extremely low almost all year long; and the second - no less important - was that the country only exists for the purpose of this exercise.
Description
In July 2013, Pedro Torca and Marisa Mercader travelled to Taxonia, a small European principality, to celebrate their recent graduation from the Executive MBA program. Pedro, who worked at an engineering firm, and Marisa, who was in charge of Project Finance at a bank, had been thinking about starting their own company for a long time, and they were constantly exploring business opportunities.
Taxonia, located between Sweden and Portugal, was known for its natural resources and its residents' awareness of sustainable economic activities. In this vein, the government and banks offered subsidies and loans to encourage the construction and operation of cogeneration plants. Residents and companies in Taxonia did not pay direct taxes and had managed to keep inflation close to zero over the past decade. Taxonia would certainly have been an enviable country, were it not for two disadvantages: the first was that temperatures remained extremely low almost all year long; and the second - no less important - was that the country only exists for the purpose of this exercise.
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Taxonia, located between Sweden and Portugal, was known for its natural resources and its residents' awareness of sustainable economic activities. In this vein, the government and banks offered subsidies and loans to encourage the construction and operation of cogeneration plants. Residents and companies in Taxonia did not pay direct taxes and had managed to keep inflation close to zero over the past decade. Taxonia would certainly have been an enviable country, were it not for two disadvantages: the first was that temperatures remained extremely low almost all year long; and the second - no less important - was that the country only exists for the purpose of this exercise.
Geographic Setting: Sweden
Industry Setting: Financial
Learning Objective
Drawing up a balance sheet that reflects NESA's equity situation.
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