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Suppose your roommate just invented an electronic pencil that senses when a word being written is misspelled, beeps, and shows the correct spelling on a small screen on the side of the pencil.
Your roommate comes to you for advice and money. She figures the pencil can be manufactured for about $5, since the cost of computer chips has dropped so low. She will make you a 40% owner if you help manufacture and sell the pencils. She asks you to put up $500 for materials for the first 100 units. She asks that you help make and sell the pencils after classes.
Since your roommate is studying electronic engineering, she knows about as much about marketing as you know about electronics. You agree to study the possibilities. You make a list of questions that need to be answered before you commit your $500.
Write a response that includes your answers to the following questions.
Prepare your initial discussion by providing a detailed response with at least three paragraphs.
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