Starting and running a business carries its own set of risk exposures, and there are several factors that can impact how safe your personal and business assets are from risk. These include, but are not limited to, the type of business entity you choose, the state you choose to do business in, as well as how you manage your business, your human resources, and your taxes. Business risk management identifies your options for handling these risks.
Executive compensation focuses on both cash and non-cash approaches. The size and structure of the business significantly influences your compensation systems. Large businesses tend to provide owners with sophisticated and sometimes complex compensation formulas. Small businesses tend to adopt a more straightforward compensation approach. Examples of compensation include insurance benefits, qualified retirement plans, stock options, personal performance initiatives, and other tax-advantaged non qualified plans.