The What Went Wrong Feature in Chapter 13 Focuses on Wesabe

question 7

Multiple Choice

The What Went Wrong feature in Chapter 13 focuses on Wesabe, a Web-based company that was launched in 2006 to help people manage their personal finances. According to Marc Hedlund, one of Wesabe's cofounders, the company failed for two primary reasons. First, it misunderstood its users. Second:

• A) it didn't allow a partner to provide it with an essential service that it decided to build on its own
• B) it didn't achieve a large enough critical mass of users
• C) it didn't implement a revenue model fast enough
• D) it didn't utilize both internal and external growth strategies
• E) it didn't hire an experienced CEO

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Definitions:

Weekly Payroll

The total sum of all employee earnings paid on a weekly basis.

Supplies on Account

Supplies purchased by a company on credit, for which payment will be made at a later date, increasing accounts payable.

Historical Cost

The original monetary value of an asset or liability, recorded at the time of its acquisition or incurrence.

Fair Values

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.