1. If you expanded, and hired additional people to help you, might that give rise to agency problems?
2. If you needed capital to buy an inventory of computers to sell to students, or to develop software to help run the business, might that lead to agency problems? Would it matter if the new capital came in the form of an unsecured bank loan, a bank loan secured by your inventory of computers, or from new stockholders (assuming you incorporate)?
Suppose you decided (like Michael Dell) to start a computer company. You know from experience that many students, who are now required to own and operate a personal computer, are having difficulty setting up their computers, accessing various materials from the local college network and from the Internet, and installing new programs when they become available. Your immediate plan is to provide a service under which representatives of your company will help students set up their computers, show them how to access various databases, and offer an e-mail “help desk” for various problems that will undoubtedly arise.