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Go-Figure, Inc.*The actual company name and product has beendisguised.Go-Figure, a newly formed corporation, has developed aproprietary circuit board inspection system that offers ahigh-speed way to inspect boards for defects. Data indicate that 10to 25 percent of circuit boards that leave a manufacturing linehave defects such as wrong polarity, missing components, wrongcomponents, etc. Quality control is a serious problem formanufacturers as, in aggregate, they place 2 to 5 millioncomponents on circuit boards per day, a number that is increasingrapidly. As circuit boards become smaller and more denselypopulated with components, the potential for defects increases, asdoes the difficulty of detecting the defects.Go-Figure uses a unique technology for circuit board inspectionsand has applied for a patent on the technology. Product testingshows considerable detection success and the technology is muchless costly than alternative mechanical methods of inspection andvisual inspection. Visual inspection is prone to error and is verytime-consuming. Preliminary market research indicates that,worldwide, there currently are 30,000 manufacturing lines thatcould be served using the Go-Figure technology.Go-Figure has developed the technology and a prototype, and hasarranged for a host site where it can demonstrate use of thesystem. The firm is seeking an additional $1 million from outsideinvestors. It proposes to raise equity capital from business angelsby issuing them common stock at $1 per share. Minimum investment is$25,000. The entrepreneur and members of the board own existingequity. The management team is looking for additional expertise andis willing to consider board membership for a well-qualifiedinvestor.You are an employee of Go-Figure, and have been deputed with thejob of putting together a draft business plan that will becirculated to prospective investors.As a starting point, look at some Internet sites on businessplans and develop a brief outline of what you believe the majorparts of the Go-Figure business plan should be.Prepare a list of questions you believe any outside investorwould want to have answered before investing, e.g., What will bedone with the proceeds? What is the exit mechanism that iscontemplated? Make this list as complete as possible.After you have developed the outline, explain in whichsection(s) of the plan each of the following might beaddressed.Commitment of the entrepreneurPresent and future financial needsSpecifics of the opportunitySignificant riskCompetitionSources of competitive advantageCapabilities of managementHarvestingOnce you have thought about the outline in more detail, it iscertain that you will have a list of questions you will need tohave answered, or at least, researched, prior to completing theplan. What are these questions? What are your suggestions forgetting them answered?*Source: Smith, J., Smith, R. L.,Smith, R., & Bliss, R. (2011). Entrepreneurial finance:strategy, valuation, and deal structure. Stanford UniversityPress.