Chuck is a newly recruited CEO of a startup. He makes a presentation to the investor and they commit verbally to provide $16 million funding, impressed by the numbers in the presentation. However Chuck is informed by his Betty that the numbers are exaggerated. From his further research on this, he understood that she was correct and there was remote possibility of achieving the numbers projected. But the renewal income figure which impressed the clients most was totally incorrect. Chuck is in a dilemma how to proceed further. Characters in the case: Chuck Campbell, Betty Mars, investors, a member of the management team are the characters mentioned in this case. Adequate information: Chuck is a newly recruited CEO of the startup. The investors had verbally committed to $16 million funding impressed by the renewal income. To determine: If Chuck should not inform about the incorrect numbers but when the company does not meet the numbers, provide an explanation to the investors as most high tech companies do.

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Chapter 6, Problem 1ED

Summary Introduction

Case summary:

Chuck is a newly recruited CEO of a startup. He makes a presentation to the investor and they commit verbally to provide $16 million funding, impressed by the numbers in the presentation. However Chuck is informed by his Betty that the numbers are exaggerated. From his further research on this, he understood that she was correct and there was remote possibility of achieving the numbers projected. But the renewal income figure which impressed the clients most was totally incorrect. Chuck is in a dilemma how to proceed further.

Characters in the case:

Chuck Campbell, Betty Mars, investors, a member of the management team are the characters mentioned in this case.

Adequate information:

Chuck is a newly recruited CEO of the startup. The investors had verbally committed to $16 million funding impressed by the renewal income.

To determine:

If Chuck should not inform about the incorrect numbers but when the company does not meet the numbers, provide an explanation to the investors as most high tech companies do.

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