Fact situation: You and a friend have worked together at a large advertising agency that develops web sites. Each of you has received promotions at a regular rate, and make a six-figure income. The companys clients are large consumer products companies that include companies in the grocery businesses to apparel businesses to car manufacturers. You and your friend believe there is a large untapped market to advertise apps that are inexpensive and easy to use for both the iPhone and Android marketplace. You have pitched this idea to upper management at the company, but they have rejected the proposal as being too different from the core business model of the company. As a result of this rejection, you and your friend have developed a business plan for starting a new company. The company will initially employ 5 10 web developers as well as an additional 5 10 application developers. You will also need someone to run company finances, marketing, human resources, advertising and sales. You anticipate that your first-year cash flow needs will be between 10 and 20 million dollars. Your business plan has already been drawn up and you have contacted a number of people to fill the positions that you have identified for the new company. Your exit strategy is to either take the company public in 3 to 5 years or to be purchased by a larger company. Combined, you and your partner have $150,000 in cash and have contacted potential angel investors who can contribute an additional $500,000 in funds. You have contacted several banks and investment houses to raise the additional capital needed to start the business. Required: Determine the best form of business organization needed to setup the company. Next, determine the best way to raise additional capital; that is, through one of three ways: additional angel investing, traditional bank financing, or financing provided through investment banks (or a combination of the three). Finally, determine the best exit strategy for the company.