The Faster Modem Corporation was founded by two engineers who managed to capitalize their firm with $150,000.

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The Faster Modem Corporation was founded by two engineers who managed to capitalize their firm with $150,000. They were able to raise this money because their test model performed much faster than current modems on the market and they received an initial commitment from a national firm to market their modem. However, a national modem manufacturer beat them to the market, and they found that they had invested $150,000 in obsolete technology. They now find that they have no sales, $500 in cash, and a $2,000 payment due to their creditor on the first of next month. What are the owners' options?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Entrepreneurial Finance

ISBN: 978-0133140514

6th edition

Authors: Philip J. Adelman; Alan M. Marks

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