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.

BuyFind

Management, Loose-Leaf Version

13th Edition
Richard L. Daft
Publisher: South-Western College Pub
ISBN: 9781305969308
BuyFind

Management, Loose-Leaf Version

13th Edition
Richard L. Daft
Publisher: South-Western College Pub
ISBN: 9781305969308

Solutions

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.

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