"Arbeit" means "work", "geber" means "giver" and thus "Arbeitgeber" means "workgiver", or more elegantly, "employer." German words always seem long and complicated, when they are in fact merely made up of a few smaller words that can be used to derive the general meaning of the larger word.
A manager is not the same thing as an employer. The literal translation "work giver" is not used in English. Sometimes people propse alternate translations which Duolingo temporarily accepts and then it is proven to be incorrect at which point those translations are no longer accepted.
Can you tell from this sentence if the employers are friends of the person stating this sentence (The two employers are my friends), OR are the two employers friends of each other)? OR can the sentence be understood in German to mean either or both possibilities, like it does in English, needing more context if one wants to understand exactly what is being said?
People can be friends and lovers at the same time. However, without context, you would never substitute lover for friend in English.
You would not tell an non native English speaker that they can always translate the managers are friends as....the managers are lovers.....unless there is some reason in the context for them not do so. Quite the opposite. You would tell them that the sentence as it is, simply says they are friends.
It's not a good idea to think of them as "suggestions" -- this is one of the reasons.
They're called "hints", and can jog your memory but they're not reliable enough to be "suggestions" or "recommendations".
The hints may contain translations that are not appropriate for the current sentence, because words often have multiple meanings.
Also, even if you do select an appropriate translation, remember that you need to get the word order correct as well and that words have to agree with each other -- article with noun, subject with verb, and so on.
If you get the noun right but the article wrong, you may get a correction with a different noun that happens to use the article you picked.