The flow of money received on a sometimes a weekly, monthly, or yearly basis is known as SALARY.
Salary is the compensation employees received from their employers. It can be weekly, monthly, or yearly basis depending on the contract agreement between the two parties.
The two primary factors affecting an entrepreneur choice of legal ownership for a venture are TAXES AND LEGAL LIABILITY.
The type of business that an entrepreneur establish will determine the type and the amount of tax that it will be required to pay. The legal liability of the entrepreneur determines the extent to which he can be liable in case he finds himself in a financial mess. The entrepreneur should try and minimize the impacts of these two factors.
Answer:
(B) Unity of direction
Explanation:
The principal of unity of direction is one of the 14 administrative principles developed by Henri Fayol. It is a concept found in administrative management theory. The principle provides that there should be only one leader and one plan for a series of activities seeking the accomplishment of the same objective
Answer:
The statement is True
Explanation:
A higher price level is a term that describes an economic condition in which more money is required to purchase a given amount of goods and services, at a given period, tland this leads to inflation overtime.
However, with a higher expected price level, it implies that a decline in the real value of a constant nominal amount of money balances is expected. Thus, there is an high tendency among people to substitute away from holding money and toward holding non-liquid assets whose prices may rise with the in the foreseeable future.
According to Okun’s law, for every 1 percentage point by
which the actual unemployment rate exceeds the natural rate, a negative GDP gap
of about 2 percent occurs. The actual unemployment rate exceeds the natural
rate by 4 percent. This is calculated as follows :
Actual unemployment – natural unemployment = 9 – 5 = 4%.
Thus, according to Okun’s law the GDP gap is -8%.
If the potential GDP is $ 500 billion, the actual GDP is 8%
lower than the potential GDP. In other words, 8% of the $ 500 billion is being
forgone because of cyclical unemployment.
GDP forgone = 8% x potential GDP = 8% x 500 = $40 billion
