Corporate Finance
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After recently graduating from college, you have decided to start a new business. You and several of your friends have decided to sell customized jewelry to wholesalers and directly to customers via an online web portal. You, along with 4 of your friends will each have to contribute $10,000 in initial capital to pay for the jewelry manufacturing, website design and hosting. The total amount of upfront capital is $50,000. The jewelry products are in high demand and are expected to sell with a large profit margin. Your team anticipates making a profit of $200,000 in its first year.
- How best will you form your organization, and why did you select this form of business organization?
- Who should manage the organization? (principals or agents)
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