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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2061 |
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However, as stated in the case an investment receivables, equal to thirty-five days' sales was charged to each warehouse. In addition to the assets, a small cash fund was deposited in a local bank. No current or long-term liabilities were recorded at the divisional level.
Affects of the New Compensation Plan
Some concerns by some managers about the new incentive plans with relation to their year-end compensation...
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One concern, in particular was brought to the attention of divisional management, which was from Larry Hoffman, manager of the Denver branch. Hoffman was unsure of what decision to make about whether he should lease the new warehouse being built or own it. The individual branch managers for this investment centre have authority to make decisions that affect both profit and investments, which in turn affect the compensation level received...
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