Corporate Finance

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After recently graduating from college, you have decided to start a new business.  You and several of your friends have decided to sell customized jewelry to wholesalers and directly to customers via an online web portal.  You, along with 4 of your friends will each have to contribute $10,000 in initial capital to pay for the jewelry manufacturing, website design and hosting.  The total amount of upfront capital is $50,000.  The jewelry products are in high demand and are expected to sell with a large profit margin.  Your team anticipates making a profit of $200,000 in its first year. 

  1. How best will you form your organization, and why did you select this form of business organization?
  2. Who should manage the organization?  (principals or agents)

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