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Principle: The executive in a given company whose compensation package is determined by advice of an external consultant is likely to be overcompensated if the consultant also has business interests with the company the executive manages.
Summary
Domain: Executive of a company has a compensation package determined by advice of an external consultant
Rule: If the consultant has business interests with the company → executive is likely to be overcompensated
Find or Complete the Application
The correct answer will involve a conclusion that an executive is likely overcompensated, and the evidence will establish that the executive’s compensation is determined by an external consultant who has business interests with the executive’s company.
4.
Which one of the following █████████ ████████ ████ ███████ ██ ███ █████████ ██████ ██████
a
The president of ███ ███████ ███████████ ██ ██████████ █████████ █████ ██ ████████ ██ ██████ ███ ████████ ██████ ██ █████ ████ ████ ███ ███████ ████████ ██ ███████ █████████
b
The president of ███ ███████ ███████████ ██ ████████ █████████ █████ ███ █████ ██████ ████████████ ███████ ███ ██████████ ████ █████ ████ ████ ███ █████████ ███████ ████ ██ ██ ████████ █████
c
The president of ███ ███████ ███████████ ██ ████████ ███ █████████ █████ ███ █████ ████████████ ███████ ███ ██████████ ██ ███ ███████ █████ ██ █████████ ███████ █████████ ███ ████████ ██ ██ ████████ ████████████ ███████████
d
The president of ███████ ███████████ ██ ████████ █████████ █████ ███ ███████ █████ ██ █████████ ██████████ ███ ████████████ ██ █████████ ███ ██████ ██ ██ ████████ ██████████ ███ ███ ████ █████ █████████ ████ ████████
e
The president of ███████ ███████████ ██ ██████████ ███ █████████ █████ ███ ████████ ██████████ ███ █████ ██ █████████ ████████ ██ ██████ ██ █████████ ████████ ███ ██ █████ █████████ ████ ████████