1 You invent a medical device that has the potential of wide use, and you assign your intellectual property rights to a newly-formed corporation in which you begin as the sole owner. The corporation will pursue patenting of the invention with hopes that the medical device will be commercially distributed. You believe that it will take $100,000 to complete the patent process, obtain Food and Drug Administration (FDA) clearance, and determine whether the medical device is commercially viable. During this start-up phase, you will be the only employee of the new business, and you have only $20,000 in available savings. (Sources: Friends & Family, Crow-funding, Incubators, Private Placement of Securities to Outside Investors ie., angel investors, venture capitalists, private equity funds, public offering of Securities)

1.1 Explain how you would capitalize your new business, using at least two capital sources and stating why you selected those capital sources.

1.2 As you organize the business, what is the first thing that needs to be done and why? Please explain in detail specific items that must consider before organizing and capitalizing any business enterprise.