Which Type of Constraint Would Prevent an HR Manager from Paying

question 23

Multiple Choice

Which type of constraint would prevent an HR manager from paying a wage rate that is twice as high as the prevailing community wage rate when offering positions to workers recruited for hard-to-fill positions?

• A) Legal
• B) Industry
• C) Economic
• D) Organizational

Understand the fundamental concepts of corporate finance, including the difference between debt securities and ownership interest.

Recognize the constraints and regulations governing the issuance of dividends and the repurchase of shares by a corporation.

Identify the roles and powers of a corporation's board of directors in setting stock prices, issuing shares, and declaring dividends.

Comprehend the importance and application of various types of tests (e.g., earned surplus test, net asset test) in determining a corporation's ability to issue dividends.

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Definitions:

Commercial Banks

Banks that provide a wide range of services to businesses and consumers including loans, checking accounts, and savings options.

Commercial Bank Loans

are loans that businesses and individuals can obtain from a commercial bank to finance various needs, such as business expansion or personal expenses.

Short-Term Financing

Refers to borrowing funds for a period of less than one year to meet immediate financial requirements.

Spontaneous Financing

Financing that naturally increases as a firm's operating levels increase, typically through trade credits and accruals.