1. You and a close friend decide to start a computer software firm
which has a target audience of worldwide universities and university students.
Your goal is to grow the firm into a multi-million dollar firm
and then retire to Costa Rica with your family.
Consider the following and respond completely with at least 2-3
paragraphs for each question with citation and reference.
4. What type of
organizational structure will you implement? What are the reasons which
led you to this decision?
5. Within the first
year you require $100k in short term capital to meet current payroll and parts
expenditures. How will you raise this money and explain why you chose this
6. Growth is good however
to reach the next growth plateau you now require an influx of $5M. Therefore
you decide to choose the IPO. Explain an IPO and the process your firm will
need to take to achieve this IPO. Will you lose control of your firm if
you choose this IPO route?
7. Finally, instead
of cash bonuses or dividends, you and your partner decide to offer stock
options instead. What are the advantages and disadvantages of this stock option