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denis23 [38]
3 years ago
9

The owners of a small manufacturing concern have hired a manager to run the company with the expectation that (s)he will buy the

company after five years. The goal of the owners in making this hire is to find the appropriate manager that will increase profits substantially. Compensation of the new manager is a flat salary plus 50% of first $200,000 of profit, and then 5% of profit over $200,000. Purchase price for the company is set as 41 2 times net earnings (profit), computed as average annual profitability (prior to calculation of the managers bonus) over
the next five years.
(a) Does the bonus structure for the manager provide the manager with the appropriate incentive to increase profits beyond the first $200,000 ? Explain briefly.
(b) Is it a good idea to link the purhcase price of the company to the earnings (profit) of the company. Given this linkage, what do you think the manager will try to do?
(c) Does this contract align the incentives of the new manager with the (current)goals of the owners?
Business
1 answer:
Viefleur [7K]3 years ago
8 0

Answer:

sry need points

Explanation:

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An economy produces final goods and services with a market value of $10,000 billion in a given year, but only $8,500 billion wor
Ghella [55]

$5000 is the GDP

Explanation:

GDP calculates the value of final goods and services produced in a given year. The value of goods and services produced is included in GDP measurement and not the value of goods and services sold.

GDP is the largest quantitative measure in the overall economic output of any country.In fact, GDP measures the monetary value of all goods and services produced over a given period within a country's geographical boundaries.

The GDP per capita ratio to the entire region's population is the average standard of living.

3 0
3 years ago
5. The International Property Right Index scores countries based on the legal and political environment and how well property ri
nexus9112 [7]

Answer:

I used the most recent figures of the international property rights index (year 2019), and the most recent GDP per capita estimamtes by the IMF in purchasing power parity. (year 2019)

Three countries with high scores, with GDP per capita (PPP):

  1. Finland - score of 8.712 - U$ 46.430
  2. Switzerland - score of 8.571 - U$ 64.649
  3. United States - score of 8.202 - U$ 62.606

Three countries with low scores, with GDP per capita (PPP):

  1. Ukraine - score of 4.432 - U$ 9.283
  2. Pakistan - score of 3.874 - U$ 5.680
  3. Haiti - score of 2.703 - U$ 1.864

The pattern that we find is that there is a strong correlation between the International Property Right Index scores and the GDP per capita figures. This is consistent with the findings in other similar rankings such as the Global Competitiveness Report, published by the World Economic Forum, and the Economic Freedom Index, published by the Heritage Foundation.

What can be interpreted is that property rights, and the strong enforcement of those property rights promote economic development and growth. This is because the protection of private property stimulates human action. For example, the United States has a strong judiciary, and rule of law. In this country, people can invest their money in a project with the certainty that those invesments will not be expropriated by an arbitrary judiciary. This promotes development because investing leads to higher economic output.

Those same incentives do not exist in countries that do not enforce property rights, and that is one of the main reasons why they are poor.  

4 0
3 years ago
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries,
ale4655 [162]

Answer:

I will use the 2020 tax schedule since recovery rebate credit applies to 2020:

Marc and Michelle's gross income = Marc's and Michelle's salaries + interest from corporate bonds = $64,000 + $12,000 + $500 = $76,500

they should choose the standard deduction since it is higher than their itemized deductions = ($24,400)

contribution to IRA = ($2,500)

alimony payment = ($1,500) the divorce agreement was settled on 2005

Marc and Michelle's taxable income = $48,100

Marc and Michelle's tax liability = $1,975 + [12% x ($48,100 - $19,750)] = $5,377

Interests on municipal bonds is not taxable.

The amount of taxes that they owe = $5,377 - $3,500 (federal tax withholdings) = $1,877

Refundable tax credits:

$2,000 in child tax credit

$2,900 in recovery rebate credit

total = $4,900

taxes payable or refund = tax liability - refundable tax credits = $1,877 - $4,900 = -$3,023.

Marc and Michelle should get a refund for $3,023

4 0
3 years ago
What are the characteristics of a high-performance work system approach to hrm?
Anvisha [2.4K]

The characteristics of a high-performance work system approach to HRM  are-

  • Focuses on collective levels of human and social capital
  • Enhances the performance of all employees systematically
  • Improves employee motivation and opportunities

Among the trends that are occurring in today's high-performance work systems are reliance on knowledge workers, empowerment of employees to make decisions, and the use of teamwork.

A high-performance work system is a bundle of HRM practices designed to promote employees' skills, motivation and involvement to enable a firm to gain a sustainable competitive advantage (Datta et al., 2005; Guthrie, 2001; Huselid, 1995), which includes employment security, extensive training, teams and decentralized

The phrase 'high-performance human resources' (HPHR) is generally taken to refer to human resource management (HRM) practices that have positive effects on the performance of an enterprise, typically a business enterprise.

Learn more about high-performance test here: brainly.com/question/1532968

#SPJ4

4 0
1 year ago
Which of the following is not true about a community college
Ivenika [448]

Answer:

tuition is typically less and it does not earn any degree or certificate

7 0
2 years ago
Read 2 more answers
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