Which of the Following Best Explains Why an Increase in the Minimum

question 32

Multiple Choice

Which of the following best explains why an increase in the minimum wage is more problematic for mom and pop restaurants than for big chain restaurants?

• A)Chain restaurants are exempt from minimum wage laws.
• B)Mom and pop restaurants have more difficulty attracting workers when wages rise.
• C)Mom and pop restaurants are more dependent on labor relative to chain restaurants.
• D)Chain restaurants have more monopoly pricing power and can more easily raise prices than mom and pop stores.

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Definitions:

Bankruptcy Judge

A judicial officer with the authority to hear and decide bankruptcy cases within a federal bankruptcy court.

Administration

in a legal context, refers to the management and settlement of an estate or business affairs, especially in cases of bankruptcy or probate.

State Law Claims

legal actions based on violations of state statutes or common law, as opposed to federal laws.

Creditors' Meeting

A gathering organized during the bankruptcy process where creditors can question the debtor about their finances and the proposed plans for reorganizing or settling debts.