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One way Krispy Kreme executives can achieve the revenue target is to open new stores as fast as possible

Accounting

One way Krispy Kreme executives can achieve the revenue target is to open new stores as fast as possible. Explain why this might alarm shareholders. 2. Why might it be important for the bonus plan to use the same EBITDA definition used in Krispy Kreme's "secured credit facilities' (loan agreements)? 3. Describe how Krispy Kreme's executive bonus plan might lead to accounting abuses at the company. 4. Beginning in fiscal 2014 (the year ended February 1, 2015), Krispy Kreme began using pre-tax income instead of EBITDA as a performance metric in its compensation plan. What information in the company's balance sheets suggests its management may have been responding to changing financial incentives when the performance metric changed?

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