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1 ) Option 1 : Say nothing about the false numbers - This option sounds plausible, there is just one problem. One member of the
Option : Say nothing about the false numbers This option sounds plausible, there is just one problem. One member of the management knew that the numbers are incorrect and might tell the investors which will blow everything up This will cost the company its very future and the ventures might not participate in funding at all Option : Go ahead close the deal and come clean later Although it might seem ethically OK as we are coming clean. The catch here is that the deal itself is happening on a false preface. Telling it after closing the deal will make it worse as the investors will be enraged as they will think we made up numbers just to get the investment Option : Take swift action to notify the venture capitalists of the truth of situation In this situation although we might have the danger of losing the deal and also slashed valuation of the company. Athough it will be very hard to do this but coming clean now will have less adverse effects than coming out once the deal has been closed.We will go with option : Taking swift action to notify the venture capitalists of the truth of situation and start cleaning house to get rid of people who would knowingly lie to close a deal.
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