Following his investigation into the dorm furnishing industry, James was left with a decision as whether or not to invest his time and money to starting Northern Rush with a group of third year students as his partners. His first option was to maintain the status quo, that is, to choose not to proceed with the venture. The other option open to James would be to proceed with his $10000 investment into Northern Rush. If James chose not to proceed with the investment, he would have the freedom to spend his money any way he wish whether it be consumption, saving or investing in other ventures. As mentioned, he would also have significantly more free time during his summer months to allow him to travel. One advantage of pursuing the second alternative of moving forward with Northern Rush is the low barriers of both entry and exit into the venture. As seen in the financial statements following in the appendices, there are very little actual capital costs involved with the business. The majority of financial outflows required are comprised mainly by expenses, and those mainly made up of costs of goods sold. With low barriers and capital requirements, the business would be up and running in a very short timeframe, compared to other prospects or industries. In contrast, a retailer starting up in an industry with high barriers might likely face time difficulties in first locating a supplier or setting up a supply chain. Then, time would have to be spent locating and sourcing required capital investments such as retail stores, warehouses, manufacturing facilities etc. Northern Rush would instead be able to commence operations almost immediately just following incorporation, allow revenues to flow much sooner. This low capital requirements would also be an advantage for investors as it would mean that their investment would not be tied up in the business for any