MAN 320F exam 3 Aroian
information,values - Answer- Martha McCaskey works for a division of Praxis that
specializes in industry analysis. McCaskey's current project requires her to obtain
proprietary __________ about the competitor of her client. All solutions to
successfully complete the project result in a compromise of McCaskey's _____.
Devon,4000,uncomfortable - Answer- The first alternative includes setting up another
meeting with ______ and paying him the $____ for the information needed.
McCaskey feels ___________ with this alternative because it compromises her
personal values of honesty and integrity. However, she is also lacking confidence in
whether this really is just a "gentleman's industrial espionage" - something that
sounds less dishonest.
Kauffmann,information,honesty,integrity,less - Answer- The second alternative
includes her handing over the second interview with Devon to
Kaufmann.__________ has much experience in obtaining information that is
considered proprietary in the past. In addition, McCaskey will still be promoted to
group manager if she does not conduct the second interview with Devon herself. As
long as Praxis collects the necessary ___________ about the manufacturing
processes and costs for building a new type of computer chip McCaskey will be
promoted. The main problem with this course of action is that it still conflicts with
McCaskey's personal values of ________ and __________. The main benefit is that
she can rationalize that her hands are slightly ____dirty in the process.
reporting,behavior - Answer- The third alternative includes McCaskey __________
this unethical ________ to a superior of Praxis. Because there are no formal written
guidelines that discourages a Praxis employee to gain what may be considered
proprietary information by paying a large sum to a contact, McCaskey must present
this information to upper management that will enforce regulations to be met. In
addition, Praxis is made up of four divisions with the Industry Analysis Division very
separate from the other three branches. These branches may be unaware of the
practices taking place in Industry Analysis Division; therefore, McCaskey may feel it
is pertinent to inform them of such practices. This would be a courageous move for
McCaskey and may carry great benefits. If guidelines are set she may feel her
personal values are more compatible with Praxis's and more importantly Industry
Analysis's values; thus, she will continue working for Praxis. However, it is possible
even though, Praxis' company regards itself highly in terms of "professional
standards" (page 2), they may be uninterested in hearing McCaskey's side and
handling the situation. McCaskey is also putting her job on the line if she chooses
this alternative to the dismay of her IAD superiors. She may also be committing
herself to engaging in a long, drawn out investigation of IAD's practices.
leave - Answer- The last alternative includes McCaskey deciding to not finish the
project and _____ Praxis completely. She feels the company has put her in a difficult
position where she is to compromise her values. Consequently, she may choose to
leave Praxis and seek a company with corporate values that better suit her personal
values. In this alternative, McCaskey also must decide whether to still inform her
,direct superiors, Praxis executives, and possibly the companies that the proprietary
information is being gathered about. Again, in these decisions, McCaskey may be
committing herself to drawn out investigations or possibly hurting her reputation in
the industry.
quit,disclose - Answer- In conclusion, we strongly believe it is best for McCaskey to
___ Praxis and find other employment that more accurately aligns with her personal
values, and if, the situation ever arises where she is questioned about the practices
at IAD later on, she should comply and ________ any information on the practices.
talk,display - Answer- They ___about ethics, but do not actually _____ethical
behavior.
honest,unethical - Answer- Martha is an _____and upright person, but has done
something that are _______.
slope - Answer- Martha has started to go down that slippery ____.
changing - Answer- Martha's boss _____information on her slides to change what
their research is about.
add,unethical,unethical - Answer- When you have ___all those little
_______behavior, it makes the organization _______.
What are the 3 top sources of start up funding? - Answer- Venture Capita ($18 B),
State Funds ($4 B), Angel Investors ($35 B), Three F's (friends, family, fools - $60 B)
Size of investment? - Answer- 250,000 - 500,000
Top 3 investment categories? - Answer- Medical devices & equipment, Software,
biotechnology
Where do VC's invest? - Answer- close to home ("in their backyard"), 2 hour drive
Why do Angel groups often pay over value for investments ? - Answer- bc potential
ROI
What is the percentage of successful deals for VC? - Answer- 20% make up for 80%
that dont matter
What is important to note about the seed/early stage? - Answer- preferred
investment/company stage
Where do I get the money to invest? - Answer- pension funds, insurance companies,
endowments, foundations, HIGH NET WoRTH INDIVIDUALS (not what you know
but who you know)
What is a Venture Capitalist? - Answer- equity investments made to fund the launch
or early development, or expansion of a private and quite young company.
, What kind of return does a VC expect? - Answer- higher than average return
Who will a VC fund? - Answer- Entrepreneur; someone who assumes the financial
risk of beginning and managing a new venture
What does a "perfect" investment opportunity look like? - Answer- -an
experienced/proven management team
-a great idea/concept that is proprietary
-something that cannot be duplicated
-a product or service that 7 billion humans will buy
-a great rate of return on investment
-intellectual property that is protected by patents or trademarks
-Zero risk, which does not exist (PERFECT INVESTMENT DOES NOT EXIST BC
fundamental laws of business)
What are the 3 laws of business? - Answer- 1- it will always cost more than you
thought it would
2- It will always take longer than you anticipated
3- things change continuously
What really matters in business and investment? - Answer- MARKET
OPPORTUNITY: being in a market with exponential growth with room for lots of
mistakes and people with a high need for the product.
How do you find the right venture capital?? - Answer- -need to talk to allied
professionals such as lawyers, accountants, and entrepreneurs (its not just what you
know but WHO you know)
-find the venture capitalist who have invested or specialized in your industry
-many large corporations have dedicated VC funds to invest in companies strategic
to their core business
What do we need to prepare for the VC? - Answer- -an honest business plan with
risks, challenges, opportunities, and issues
-what key members you need to hire and where they will come from
-clear strategic goals and what you plan on doing to achieve those goals
-potential customers
-a path towards liquidity
What do you do to "get the check"? - Answer- -competitive deals get funded because
VC's don't want to miss out on what their colleagues view as a great bet
-probably giving up majority of the stock
-follow their advice (golden rule)
-By the time of IPO (initial public offering/they can sell their stock to the public now)
founders own 20%
-Be ready for the fast lane
What is the golden rule when it comes to investors? - Answer- Take their money,
follow their rules (he who has the gold, makes the rules)
