Pete Owns a Small Store

question 67

Essay

Pete owns a small store. He has noticed that when he is not at the store monitoring his employees, his revenue goes down. What are two changes Pete could make to wages he pays his employees to correct this problem?

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Definitions:

Firm Profits

The financial gain a company receives after subtracting all its costs from its total revenue.

Earnings Ratio

Typically refers to the price-to-earnings (P/E) ratio, which measures a company's current share price relative to its per-share earnings.

Annual Earnings

The total amount of money earned by an individual or entity in one year, often before taxes.