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Starting Right Corporation Case Study

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Starting Right Corporation Case Study

Abstract
Julia Day watched a movie about a career woman leaving her job to start a baby food company. Julia wished to start her own baby food company, so she began developing ideas about the type of product she wanted to produce, how to package it, and the resultant quality of the product. Julia also made considerations for the type of people she would like to have work for her new company. Her determination allowed her to find suitable people to help her develop a preliminary offering of her baby food. The new baby food was received well in a small-scale study. Thereafter, Julia and her team needed to raise funds. They considered three options: corporate bonds, preferred stock, and common stock. The financial characteristics of potential investors, the return rates for each option, the market, and the future inflation rate were all evaluated regarding impact on getting the company off the ground. This case study evaluation will serve to discuss the potential investment into Starting Right Corporation by others with varying perceptions of the possible success of the business. The development of legal documentation for the business and investment alternatives for parties who are risk-averse and risk-seekers will also be discussed herein.

Sue Pansky, a retired elementary school teacher, is considering investing in Starting Right. She is very conservative and is a risk avoider. What do you recommend? Since Sue is cautious about change or innovation and wants to limit her exposure to loss, I would recommend that she evaluate her options and determine the possible outcomes to any potential decision she makes about opting in to investment in Julia’s baby food company. One way this can be done is to take a comprehensive view of the details and develop a measurement tool that will show the worst and best potential

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