Explain Different Methods of Employee Compensation

question 116

Essay

Explain different methods of employee compensation.

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Definitions:

Surrenders Control

In accounting or finance, refers to the act of a party giving up the authority or power over an asset or decision-making to another party.

Securitization

The financial process of pooling various types of contractual debt, such as mortgages or loans, and selling them as consolidated financial instruments to investors.

Securities Not Collateralized

Financial instruments or investments that are not backed by a physical asset or security, making them potentially riskier for investors since there is no guarantee of repayment through asset seizure.

Factoring

A financial transaction where a business sells its accounts receivable to a third party (the factor) at a discount, in order to receive immediate cash.