Which of the Following Is True About the Consumer Price

question 9

Multiple Choice

Which of the following is true about the Consumer Price Index (CPI) ?

• A) It helps product markets place an upper limit on the pay an organization will offer.
• B) Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market.
• C) It helps organizations lure top-quality employees.
• D) The CPI helps control labor market's demand for pay increases.
• E) It helps organizations to compete with companies in other industries that hire similar employees.

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Definitions:

Corporate Veil

The corporate veil is the legal concept separating the actions of a corporation from its shareholders, protecting them from personal liability.

Shareholder

An owner of a corporation, who has no inherent right to manage the corporation but has liability limited to his capital contribution. Also called stockholder.

Obligations

Duties or responsibilities that are legally or morally binding.

Directors And Officers

Individuals appointed or elected to oversee the major policies and decisions of a company, corporation, or non-profit organization.