ACC 557 Week 3 DQ 2

Most people are familiar with cash as a form of compensation to employees. To conserve cash, companies have devised creative methods (gift cards, barter,stock options, bonuses, free meals, etc) to pay employees and independent contractors. Using the Internet, analyze non-cash forms of compensation to employees and/or independent contractors.

As a CFO of a new company, analyze non-traditional compensation (or fringe benefits) to conserve cash.

Discuss the advantages and disadvantages to using this type of benefit. For instance, assess the impact to employee morale, fraud, etc.

Answer:

With the current economic downturn, combined with inflationary pressures on operating costs - including energy, raw materials, wages and healthcare - business owners are looking for...