Question

Elizabeth Holmes issue.

Create a plan by which you can make sure this does not happen in your own company ?

Answer 1

Elizabeth Holmes and her company Theranos has become a benchmark of exaggeration and potential fraud in the investment industry. Theranos had been charged with plotting false claims that it had developed a technique by virtue of which it could test the blood samples of the individuals with a very meagre amount of blood, and with high accuracy. This exaggeration of their capability attracted huge investment and Theranos had soon become $10 billion company. However, in a span of one year after that, it all perished, as claims of a palatable fraud was launched from various quarters. A huge umber of investors lost their money and the company Theranos was declared a defunct. As an investor, we must ensure that we do not commit the same mistakes which have been committed by Elizabeth Holmes. We must ensure that we do not build the base of our company or firm on the basis of a lie or fraud, as it does come back to haunt us. From the business model point of view, we must have a structure where every invention or discovery is being thoroughly examined and tested out with perfection before being claimed to be, and there must be a high intensity of bearing the responsibility on the shoulders of the company. Stringent checks must be done to ensure that the product under invention or discovery must be unique and must not be a stolen idea. Moreover, from the economic point of view, before declaring the details of the product among the investors, it is impediment that we have done all proper checks and investigations. Once the investors are invited, it becomes very difficult to cope up with the investment if we need to back track with the invention or discovery. As it happened with Miss Elizabeth Holmes, we must be careful to potential fraud, not only by us, but also by any of our employees.