When an Employer Is Forced to Increase Wages at the Same

question 107

Multiple Choice

When an employer is forced to increase wages at the same rate of inflation:

• A) the worker is receiving a cost-of-living adjustment.
• B) the economy is experiencing stagflation.
• C) the economy is experiencing hyperinflation.
• D) the economy is experiencing disinflation.
• E) the effects of expansionary monetary policy are amplified.

Describe various financing options available for small businesses, including equity capital, trade credit, and factoring.

Understand the implications of loan terms such as maturity, interest rates, and repayment schedules.

Appreciate the complexities involved in securing financing and navigating financial institutions.

Grasp the concept of self-liquidating and installment loans and their applications for businesses.

---

Definitions:

Dissolution

The process of legally dissolving a company or partnership, ending its existence by winding up affairs, liquidating assets, and distributing the remaining assets or debts to shareholders or partners.

Original Capital

The initial amount of money invested in a business by its owners or shareholders.

Share of Income

The portion of earnings allocated to a shareholder, typically in the form of dividends.

Salaries

Payments made to employees for their services over a specified period, typically expressed on an annual basis.