c. Flagship Marketing offers consulting services in social media and marketing. The CEO let department managers handle the budget for their projects, with little oversight. The CEO hoped that the department budget freedom would attract clients with large budgets in order to put money back into the business. The budget scenario worked except for one project, which went well over budget. The client felt that the tactics used to secure her business were fraudulent, and sued the company for misrepresentation. The lawsuit resulted in a large payoutto the client, sapping much ofthe budgetary resources of the company. Because of the large law suit, many departments are now unableto pay the monthly invoices immediately. With a large client base built, the CEO hopes to make the company profitable again within 3 years, but is forced to file for bankruptcy. [2 points)