Each item describes a situation and is followed by four possible responses. Indicate the response you find most appropriate. Choose only one response for each item. The responses will be evaluated based on the level of appropriateness for the given situation.
Aman’s startup faces financial trouble. An investor offers funds but asks Aman to give up majority ownership. Aman is emotionally attached to the startup. What is the most strategic decision?
Show answer & explanation
Correct answer: C
Explanation
1) Reject the offer and risk bankruptcy
This is not a prudent decision, as the company could fail without financial assistance.
2) Accept the offer in its entirety
This would save the company, but Aman could lose complete control over his startup.
4) Quit the job and find another one
This disregards the possibility of saving the startup.
3) Negotiate to retain some strategic control
This is the best decision, as it allows Aman to secure the necessary funding while retaining some control over key company decisions. This helps the company survive financially and also safeguards Aman's role within the business.
Therefore, Option (3) is the correct answer.