In Las Vegas,the Cost of Living Index Is 110,and in San

question 151

Multiple Choice

In Las Vegas,the cost of living index is 110,and in San Francisco,it is 170.You work in Las Vegas currently and your salary is $57,000.You are offered a promotion and pay raise of $70,000 to move to San Francisco.If you take the promotion

• A) your nominal wage and your real wage have increased.
• B) your nominal wage increased but your real wage has decreased.
• C) your nominal wage decreased but your real wage has increased.
• D) both your nominal and real wage have decreased.
• E) your real wage remained constant even though your nominal wage rose.

Explore the relationship between an organization and its external environment.

Comprehend the process of strategy formulation and implementation.

Recognize the common strategic responses of organizations to their environment.

Describe the impact of the environment on organizations and how this interaction is managed.

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Definitions:

Treasury Shares

Stocks that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Contributed Surplus

An account on the shareholders' equity section of the balance sheet that represents the excess amount investors paid over the par value of the shares.

Retained Earnings

Accumulated net incomes of a company not paid out as dividends but retained for reinvestment in the business or to pay off debts.

Shareholders' Equity

This represents owners' claims after all liabilities have been deducted from the total assets of a company.