Howard Thought He Had His Expense Control Problems Resolved When

question 98

Multiple Choice

Howard thought he had his expense control problems resolved when he decided he would hire sales clerks from the local high school and pay them minimum wage. Which of the following statements is most likely to be true of Howard's decision?

• A) No one works for minimum wage
• B) It is a good move because of the decreasing workforce
• C) He will probably have higher turnover, absenteeism and poor labour productivity
• D) Since high school students are inexperienced, it is justified to pay minimum wage
• E) Young energetic enthusiasm will help Howard's sales

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Definitions:

Short-term Debt Securities

Financial instruments that represent borrowed funds which must be repaid within a short time frame, typically less than one year.

Money Markets

Financial markets for short-term borrowing and lending, dealing with assets that have high liquidity and short maturities.

Capital Market Instruments

Financial securities used in the capital markets to raise funds or investment, including stocks, bonds, debentures, and other vehicles.

Commercial Loan

A debt-based financial agreement between a business and a financial institution, used for funding major capital expenditures or operational costs.