The What Went Wrong Feature in Chapter 13 Focuses on Wesabe

question 41

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 didn't allow a partner to provide it with an essential service that it decided to build on its own. Second, it ________.

• A) didn't hire an experienced CEO
• B) didn't achieve a large enough critical mass of users
• C) didn't implement a revenue model fast enough
• D) didn't utilize both internal and external growth strategies
• E) misunderstood its users

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Definitions:

Expel

To expel means to officially force someone to leave a place or organization, often due to violation of rules or norms.

Unocal Test

A legal standard used to determine if the defensive measures taken by a board of directors during a takeover bid are in the best interests of the corporation and its shareholders.

Conflicted Interest

A situation where a person's personal interests could interfere with their professional duties or responsibilities, potentially leading to bias.

Takeover's Threat

Takeover's threat refers to the risk of an unsolicited attempt by one company to gain control of another by acquiring its shares.