Consternation Corporation Has an Agreement with Its Workers to Index

question 33

Multiple Choice

Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI.Consternation Corporation currently pays its production line workers $8.00 an hour and is scheduled to index their wages today.If the CPI is currently 160 and was 128 a year ago,the firm should increase the hourly wages of its workers by

• A)$0.25.
• B)$1.60.
• C)$2.00.
• D)$2.56.

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Definitions:

Carrying on Business

The act of engaging in commercial activities with a degree of continuity and organization, aiming at producing income or profit.

Sole Proprietorship

A business owned and operated by one person, where there is no legal distinction between the owner and the business.

Unlimited Liability

A legal obligation where business owners and partners are personally responsible for all debts and liabilities of the business.

Societies Act

Legislation that governs the registration and management of not-for-profit corporations or societies in certain jurisdictions.