Prompt: Goal Alignment at a Small Manufacturing Concern. The owners of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is a flat salary plus 75% of first $150,000 of profit, and then 10% of profit over $150,000. The purchase price for the company is set as 4½ times earnings (profit), computed as average annual profitability over the next five years. Does this contract align the incentives of the new vice president with the goals of the owners? 

NEED ASSIGNMENT HELP?

We guarantee plagiarism-free and AI-free writing services. Every assignment is crafted with originality, precision, and care to meet your academic needs.

Ready to get started? Place your order directly on this post!

Let us help you achieve excellence—authentic work, every time.