You are hiring a new employee and are trying to decide how


You are hiring a new employee and are trying to decide how to structure the employment contract. In particular, you are deciding between giving the employee a stake in the firm (i.e., making him a part owner) and paying him cash bonuses based on performance benchmarks. In four sentences or less, discuss several factors that you should consider when making this decision.

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Finance Basics: You are hiring a new employee and are trying to decide how
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