Please answer each question.

3. 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.

1. What type of organizational structure will you implement? What are the reasons which led you to this decision?

2. .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 method.

3. 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?

4.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 policy?