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 go ahead with the deal and then inform later that it was the absence of the controller and because Chuck was still new to this job and did not have the required time to analyze the numbers which caused the problem.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 2ED

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 go ahead with the deal and then inform later that it was the absence of the controller and because Chuck was still new to this job and did not have the required time to analyze the numbers which caused the problem.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Review the article: Defining the Motivations and Capabilitied of Young Intrapreneurs: Literature Review and Research Opportunities 1. Discuss the differences and similarities of Entrepreneurship and Intrapreneurship. 2. How might your current organization or a former organization that you have been a member of incorporate the elements of Intrapreneurship? 3. Discuss the future of Intrapreneurship List references

Roles for Human Resource Departments Analyze HRM functions. Describe and detail each one of these functions. Why are the specific roles associated to HRM important? List references

Employees and Entrepreneurs share many skills, mindsets and values. Even if you are employed by an organization, you may have an entrepreneurial mindset and entrepreneurial traits. How do you envision yourself within an organization, as an employee rather tahan an entrepreneur? Discuss the traits and values that support this?