CMA SLP 2011 Case Exam - Backgrounder

[chinaman85]

Just an FYI for all the RFD members who are writing the case exam that the backgrounder is up! How does everyone feel about it? Printing it off now and gonna go through this sucker!

[iEyeCaptain]

Just an FYI for all the RFD members who are writing the case exam that the backgrounder is up! How does everyone feel about it? Printing it off now and gonna go through this sucker!

Good luck!

I'll come by every so often if anybody has any questions.

[SUETNEE]

Good luck!

I'll come by every so often if anybody has any questions.

backgrounder is out. i am reading it off now. and thinkwil use this platform to talk about what i think afterwards

[pkeung]

Note that there is another thread already on this with more people discussing there: http://forums.redflagdeals.com/2011-...am-1031555/20/

[SUETNEE]

Note that there is another thread already on this with more people discussing there: http://forums.redflagdeals.com/2011-...am-1031555/20/

thank you. wonder if it is adequate to pay bonus which is based on before tax income? do you know?

[BillMoocho]

Yes, it is appropriate to calculate bonuses based on before-tax income. I'm not sure if you mean as opposed to after-tax income, but tax expense is out of management's control so either one is a perfectly valid base for a bonus calculation. A lot of companies do this and it is one of the simplest ways to measure how well a company is performing (and how management should be compensated). Of course, you need to watch out for aggressive accounting that attempts to overstate net income.