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The HR director at Clearwater Electronics has been asked to advise the board on a proposal to implement a variable compensation plan for top executives in each department. The CFO wants the HR director to explain how the plan will encourage productivity in top management positions. Which statement best explains why a variable compensation plan would help increase performance?
1) The incentives will allow for the interests of management to be aligned with the interests of shareholders.
2) The incentives will encourage a healthy competition among the top executives.
3) The incentives will only be paid if the company does well, so the managers will be motivated to meet their goals.
4) The incentives will recognize employees who focus on well-chosen goals.
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1. What backs the U.S. dollar? Include the distinction between commodity money and fiat money in your answer.
Propose two ways that a company can gain a competitive advantage over other companies when striving to recruit job applicants.
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