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Question · Remuneration of former owners who become employees

In the acquisition of Alpage SA, additional consideration of 500,000 is due to two former owners who become employees of the acquiree. The additional amount is automatically forfeited if they leave the company before the end of the second year. Write a short note concluding on the nature of this amount, distinguishing facts of the case, rule and professional judgement.

Your answer

Judgment question: compare your answer with the criteria and the model explanation.

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