Question: Mr Z was recently promoted to an executive position by
Mr. Z was recently promoted to an executive position by his corporate employer. The corporation now requires him to entertain clients much more frequently, and Mr. Z expects to incur at least $1,000 out-of-pocket business entertainment expenses each month. The corporation will either reimburse him directly for these expenses or give him a salary bonus at year-end that indirectly covers his annual expenses. Which option should Mr. Z choose and why?
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