Ernie Jameson is a design engineer with a proven track record in the field of electronic musical instruments. He recently designed a new VLSI (very large scale integrated) chip. This chip is meant to be the heart and soul of a digital sampling keyboard to be called Echo. Jameson believes the Echo will set a new industry standard. He wishes to organize a business enterprise to build and market it. He has a meeting with his lawyer and conveys to her the following bits of information:

a. It will take approximately two years to turn the VLSI chip into a marketable product.

b. Jameson has more than $200,000 in savings from previous ventures. He does not want any of that money at risk in this new venture. However, he wants a part of the ownership; he is unsure what percentage he wants.

c. Currently, five private investors are willing to put money into this venture. Only two of the five want to play an active role in the enterprise. Jameson is willing to give these two some limited control.