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.
Want to see the full answer?
Check out a sample textbook solutionChapter 6 Solutions
Management (MindTap Course List)
- You have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $1 million to do with as you please. You are not an inventor, and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-food area, maybe two(if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 3 years. After 3 years you will go on tosomething else. You have narrowed your selection down to two choices: (1) Franchise L, Lisa’s Soups, Salads, & Stuff, and (2) Franchise S, Sam’s Fabulous Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in Year 3 and the forecast…arrow_forwardRoxanne Quimby met Burt Shavitz at his roadside honey stand in Maine. Twenty years later, a multimillion-dollar business is thriving. That business is Burt's Bees, the top all-natural, earth-friendly manufacturer of personal care products. Small businesses are found in nearly every industry, but retailing and wholesaling, manufacturing, and high technology are especially attractive to entrepreneurs because they are relatively easy to enter and require low initial financing. Small-business owners also find it easier to focus on a specific group of consumers in these fields than in others, and new firms in these industries suffer less from heavy competition, at least in the early stages, than do established firms. Read the case and answer the questions that follow. Part I: In 1984, Roxanne Quimby was on her way to her waitressing job when she decided to stop at a roadside stand to buy some honey from beekeeper Burt Shavitz. She soon joined forces with Shavitz, and they began marketing…arrow_forwardCathy wants to open her own accounting firm. She requires your help with the business plan. Advise Cathy on reasons for an entrepreneur to write a business plan.arrow_forward
- I have to write a grant for the Lasting Legacy Wildlife Museum (link to website below) for a family member. They have not been able to work since his heart problems. I need help writing a grant to keep their business alive. I have no idea where to start or how grants work. If you could help me I would really appreciate it. This business means a lot to my family members. https://thelastinglegacywildlifemuseum.centurylinksite.netarrow_forwardSo many people want to become their own boss. So they take the steps needed to become an Entrepreneur. Being an entrepreneur isn't just hard, it's really hard. Your days and nights, or more so your entire life, are dedicated to developing a business that you know in advance is highly likely to fail if it is not done properly. One of the biggest failures in a business adventure is planning. The reality is 80 percent of new businesses crash and burn within the first 18 months, according to Bloomberg. I believe that, more often than not, failures come as the result of people not being set up or prepared to leave behind stability for chaos. In this assignment, you will identify ways to properly plan and develop a strong strategy for a business to flourish.arrow_forwardHow else could Blue Apron have raised funds to continue to grow? Compare the risks of raising private funding to going public.arrow_forward
- You and three of your close friends have discussed plans to open a pizza restaurant with a delivery service. You intend to attract to your business young professionals who live and work near the downtown area and who are healthy and fitness-minded. You and your co-owners agree that each will invest equally in terms of time and money. However, in addition to contributions and "sweat-equity" made by each of you, another $400,000 is essential for the restaurant to succeed. 1. What type of organization is best suited for this business activity? 2. What steps would you take to manage the restaurant during times that you and your co-owners are not present? 3. What liabilities do you and your co-owners face?arrow_forwardIf your personal credit is shaky at the moment and youdon’t have a lot of cash to invest in a new business, whatsteps could you take to get a new company going?arrow_forwardEveryone admires an entrepreneur, but maybe that is because no one knows exactly what he or she does. A description of entrepreneurial duties has never been solidified, and Wirtz explains that this is an ongoing problem for those wanting to measure such duties and responsibilities, as well as for those wanting to conduct research into the successes and failures of entrepreneurship. How did you move from being a young (child) entrepreneur to becoming an employee or thinking of becoming just an employee?arrow_forward
- Hi, could you help me answering a question, it would really help me for my understanding of the subject. The question is the following “Motivation and decision-making approaches of entrepreneurs play a critical role in their entrepreneurial journey. Discuss how motivation and decision-making approaches may change on the basis of the context, time, and personal characteristics of entrepreneurs.”. Would you be able to answer this question in about 1000 words please? Thanks in advancearrow_forwardYour goal is to become the CEO of a multi-million-dollar food manufacturing corporation. You’ve had successes in the past running fast food franchises. What are your top business strategies to achieve your goal and how will you plan to execute them?arrow_forwardYou intend to start a business with a few friends producing independent movies for Netflix. You have heard of a concept called the liability of newness that suggest that that new firms are more likely to fail relative to older ones. Discuss 4 strategies that your entrepreneurial team will adopt to overcome this liability.arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub