Jack Gray and his best friend, Bruce McVay, decided to start their own small business. Jack had developed recipes for fat-free and low-fat cookies and muffins to satisfy his personal health needs. Bruce had extensive experience in managing food-service establishments. They knew that a startup company needs a quality product, adequate funds, a written business plan, some outside financial support, and a good promotion program. Each had $35,000 to invest and with their homes and other resources, they had borrowing power of an additional $125,000.

Questions:

1. What form of organization to use?

2. How to market their product?

3. How to determine exactly what products to sell?