Fixed Asset Investment - Building a Holiday House

NORTH SHORE -> short history

North Shore company is a limited liability company established in 2001 with the main activity objective being turism services. The company is registered at the company register office in CLUJ_Napoca with the following no: J12/2300/2001

The company is divided between 2 asociats which take turn in running the business , each having under their direct coordination 2 employees with a large range of duties, according to the requirements of the managers , clients etc.

There is an accountant who keeps track of money running in and out of the company and the legal documents needed in every financial period. Subscribed and paid in share capital is 2 billion lei.

Development of the company

Until nowadays the company developed its activity as a turism agency , making connections between clients and private owners of houses, usually in the countryside or near a lake or river, which people can rent for a holiday ,by helping both parties:

-> the clients by satisfying their needs in finding a suitable private holiday house in Transilvania, especially Apuseni mountains, taking in account all their specifications and requirements and ,

-> on the other side the owner of the holiday houses who is searching for renting his asset for a week-end/ a month etc.

Therefore, between North Shore and the natural person owner of the villa was signed a settlement, a commission contract.

Stage 1/investment opportunity

The managers decided that the obtained profit shouldn’t all be redistributed on investment funds, wanting to reinvest in developing the company.

Therefore, the budget for the investment project in a fixed asset was estimated at 75000 euro.

Objectives:

-> to build a wooden holiday house near the valley of the river Cris, in Negrei,

->Offering accommodation for turists passing by or others who come especially to enjoy the quiet atmosphere of this region