“We’re talking about the courtyard. Excluding the gazebos. Even if we carried tables and chairs over there, we’d need to make a seating area for those fancy nobles from scratch, right? We’ll need a considerable number of umbrellas to cover it all as well. And we can’t just put the chairs right on the ground. We need carpets of some sort. It’s going to take significant funding to set all this up, you know?”
“We should be able to manage with the decreased venue fees. The tenants aiming for the second round of bidding will be emphasizing the size of the rooms. Interior design stuff, like tablecloths and napkins, well, those were always going to be a necessity anyway. As for the costs, the expense of the shared space will be split between all participants. It’s meant to be used by everyone, after all. The total number of seats per shop will be less than a classroom, so it shouldn’t add up to much.”
“Even if there’s enough money... Hmm, there’s still no way you’ll get unrelated companies to cooperate like that. The reputations of our houses are at stake. You’ll never be able to...”
Oh, I get it. It’s something like the western army led by Ishida Kazushige at Sekigahara. Not that I’d even reach Mitsunari...
“Just leave that part to me. I’ve got a plan for the form the investment will take.”
This was actually the primary benefit for the Weinders. Let’s say, for argument’s sake, that I set up a shop and everything goes well. The Carlests and Hilda get a good scare out of it, but the practical merit for our company from this is practically non-existent. Actually, it’s just a big demerit, seeing that we’ll just be buying unwanted animosity.
I planned to use the Academy Festival as a testing ground to clean up the problem of our investment negotiations with Euphylia. At any rate, that inspector the archduchess sent me would be supervising the courtyard. It’s fine if she actually saw it for herself. Even if it would be difficult to run a test while doing real business, a shop at the festival was low risk and only runs for a limited time. It was just a school event, after all.
“The six companies will work under the jurisdiction of a temporary parent company and create a joint investment. Let’s see... How about we call it the Food Court Firm? The joint space’s management will be left to this firm.”
“So you’re saying the parent company isn’t making the children, but the children are gathering together to form the parent? That’s unreasonable. There’s no way they’ll settle together like that... There’s no way they should... Right?”
Lilka looked at me completely dumbfounded.
“That’s what the scheme for the investment system is for.”
“Investment...? Oh. Is this perhaps those stocks you were talking about before, Ricardo?” Alfina said, suddenly realizing what I was getting at.
“That’s right. Those same stocks.”
“What are you talking about?”
“Huh? Stalks? Vegetables again?”
There was now a wonderful split between myself and Alfina, and Claudia and Lilka. The two of them seemed to think we were talking about vegetables. I left the explanation entirely to Alfina and Mia.
Alfina explained the meaning of capital for business activities, while Mia explained how the practical financing worked. In short, if each company put out 10 gold and we had six companies, we would establish a company with capital funds of 60 gold. The ownership rights would then be divided by stocks. Lilka listened as her eyes darted about in confusion, while Claudia gave up on understanding halfway through.
“Setting aside Mia, why has Her Highness been studying this manner of...?”
“So that I can better understand Ricardo.”
Claudia and Mia’s gazes turned sour.
“Anyway. We take the enormous risk of creating a shared seating space, and divide it up in an easy to understand way between the participants.” I turned to Lilka and pressed her for an answer.
“...Ummm. I guess if the burden of expenses is equal, then with more customers for everyone, we’ll have more advantages. I think?”
“The Food Court Firm is an independent financer. They take rent from the participating stores in the form of stocks, and use it as proceeds for financing the food court. They then take the net income from seating after subtracting the expenses spent and divide it among the stockholders, matching the number of stocks from each store. The livelier the food court, the more profit it makes for everyone. The division of returns is fair and clear.”
Lilka fell silent. And after everyone waited for her answer for a while, she finally opened her mouth.
“Split up the risks, divide the profits in a clear way... Using the profits and risk to put all the scattered participants in order as a single entity... How?! It’s totally incomprehensible, but it kinda sounds like it makes sense, doesn’t it?!”
This was the system formed by corporate giants who spanned the entire world back on Earth, where far more enormous and complex economic activities took place. Since ownership had a direct connection to the risk and return borne from doing business, risk and return couldn’t easily be separated. This was the revolutionary concept that made it possible for total strangers to share risk and return.
Of course, without a strong backer and no way of guaranteeing the method, it would ordinarily be impossible to bring to fruition here. However, this time we’re just doing a mockup made up of students. It only had to hold out for a month at most. Moreover, we even had a common enemy to unite us. A house built on sand will still hold together somehow if given enough of a foundation.
It was said that stocks were conceptualized based on transatlantic trade. Back then, they had to square all their accounts in a single voyage.
“Got it. So what should I do?”
“I want you to go around and talk to the potential participants. That is, all the students who got caught in this change of rules and have no choice but to cling to our pipe dream, whom you mentioned earlier.”
“All I can do is bring them to you, though.”
“That’s enough. Not a single one would come if I tried to call them, after all.”
“That’s really not something to boast about, you know?”
Lilka strained a smile. Cut me some slack. That’s why I have to think of ways to rely on the system. Humanity develops by creating that which they do not possess enough of.
“...As for borrowing chairs and tables, I’ll try to get the request through as soon as possible. I’ll at least make it in time before you explain this Food Court Firm of yours.”
“Much appreciated.”
This way we could accomplish one specific goal before trying to convince them. Just having the Kendalls show some form of cooperation would surely give some relief to any potential members.
“But even so, it’s not all that simple, okay? The independent companies are incredibly prideful. They’re not the type to jump at bait just ’cause they’re in trouble.”
“Roger that. I’ll prepare a means to give the method a tangible shape for them to see.”
I glanced over to Mia, and my reliable secretary nodded. Her abilities were indispensable to accomplish the complex accounting work.
“What an interesting conversation. Do the mercantile students always speak like this?” Alfina asked in admiration.
“You’re mistaken, Your Highness. This guy is definitely not normal,” Lilka said with an exasperated expression. She then looked at Mia. “Far more outrageous than the Great Sage, huh? I get it now.”
“What are you talking about?”
“Just girl’s talk. You hear me? I’m kinda repeating myself a bit, but try and put in some effort when persuading the others, okay? It won’t be like today going forward.”
“She’s right, sir. They won’t be as simple as the members we have here.”
“I’m not simple!” Lilka objected as she pouted.