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Dedication to customer service has helped grow the business and adding the retirement plan and fringe benefits has helped Jenny gain employee loyalty. KPI now has over 120 employees. As the business has grown, Jenny has come to rely more and more on a couple of key employees to run the business. She would hate to lose any of these employees and she would like to provide them with additional compensation beyond their salary and benefits that is somehow tied to the company’s performance.
1. List the major alternatives available to KPI to align the managers’ interest with the financial performance of the company.
2. Describe the tax consequences to the company and to the employees of each alternative.
3. What is your top recommendation to Jenny and why? Please limit your response to 3 sentences.
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Show that the consumers optimal consumption bundle will change despite them being able to afford their original bundle.
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q1. is holding an investment he bought for 1000 that has a 60 percent chance of gaining 200 in value and a 40 percent
Suppose the government of Country L runs a balanced budget in Year 1 and a budget surplus in Year 2. Using a supply and demand graph, depict this change. Label the axes, curves, and the beginning and end equilibrium real interest rates and equilibriu..
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Larry earns $25,000 and pays $2,500 in tax, while Suzy earns $50,000 and pays $15,000 in tax. If Larry's income increases by $100, his tax increases by $12, but if Suzy's income increase by $100, her tax increases by $35. Calculate the average tax ra..
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