(Last Word) If the Minimum Wage in the Restaurant Industry

question 7

Multiple Choice

(Last Word) If the minimum wage in the restaurant industry increases over time, eventually we would expect

• A) the restaurant industry to expand as higher wages drive up demand.
• B) there to be fewer of all types of restaurants, but no change in the proportion of mom and pop restaurants relative to chain restaurants.
• C) the ratio of mom and pop restaurants to highly capitalized chain restaurants to increase.
• D) the ratio of highly capitalized chain restaurants to mom and pop restaurants to increase.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members from its profits.

Net Income

The amount of money a company effectively earns as profit after reducing its revenue by expenses and taxes.

Trial Balance

A worksheet for accounting where the total balances of all ledgers are arranged into equal debit and credit columns.

Trial Balance

A report that lists all the balances of a company's general ledger accounts to verify that debits equal credits.