That assets, A for assets, is equal to

It should start to make a little bit of intuitive sense

liabilities plus equity.

I'll do that in yellow.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

Capital, land and labor are the three key factors of production.

But let's say its assets are worth 1 million.

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

Remember liabilities plus equities are equal to assets.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

And then the equity is, essentially we would look at this formula.

liabilities.

Right?

These are my assets, and these are my liabilities.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

My liabilities would be 145,000.

The assets are generating this.

like an equation, but it's assets is equal to liabilities plus equity.

Communism, capitalism...

So its assets.

These are their assets, just to get all the labelling right.

that assets are equal to liability plus equity.

What's my equity?

Now we have 3,000 apples being produced, because these were really good investments.

If you take an MBA, they'll write it down, and it looks

And we have 23 billion in liabilities.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

Malibu Equity and Investments.

But I just wanted to make it clear that that's obviously the best way to generate capital for your business is when the business itself generates capital.

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

Capital intensive industries are not necessarily knowledge intensive industries.

I don't want to draw this box.

And rich, eh?

So anyway, what happens in Chapter 11?

And this is another important thing to think about.

Malibu Equity and Investments. Roger Van Zant.

Starting with newspapers, what we saw was high cost as an initial requirement for making information, knowledge and culture, which led to a stark bifurcation between producers who had to be able to raise financial capital, just like any other industrial organization and passive consumers that could choose from a certain set of things that this industrial model could produce.

They'll often say just like a big bucket of, they'll call them level three assets.

Remember the shares are split of the owner's equities not the split of the assets