Assume That the Current Interest Rate Is 7

question 33

Multiple Choice

Assume that the current interest rate is 7%. You invest $10,000 of your own money in a restaurant that you own and operate. The normal return on this investment is

• A) $0, as you used your own money.
• B) $700, as that is the interest forgone by not lending the money to someone else at a 7% interest rate.
• C) $10,000, as that is the amount invested in the restaurant.
• D) $10,700, the amount invested plus the interest charge on the investment.

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Definitions:

Employment-At-Will

A doctrine followed by most jurisdictions in the United States that says an employer can dismiss an employee at any time for any reason.

Wrongful Discharge

The unjust termination of an employee's contract, typically in violation of legal or contractual terms.

Title VII

Refers to a portion of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, and national origin.

BFOQs

Bona Fide Occupational Qualifications - employment qualifications that employers are allowed to consider while making decisions about hiring and retention of employees.