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Firms often use financial performance targets to determine bonus (incentive) compensation for managers. If a firm used a targeted percentage increase in sales, (for ex, the goal might be to increase sales by 5%) or a targeted profit margin on sales (the goal might be to achieve a 10% profit margin), how might management achieve these goals? What are the downsides to using these financial targets to determine bonus compensation? Answer needs to be at least two paragraphs with one reference

Basic Finance, Finance

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