GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Higher costs
|
|
|
Difficulty attracting quality staff
|
|
|
Vulnerability to competition (especially from larger companies)
|
|
|
Lower overall wage costs
|
Detailed explanation-1: -Disadvantages of Working for a Small Business Compensation may be lower – Small companies often can’t afford the same pay and benefits as larger corporations. You might, therefore, have a lower salary, fewer vacation and sick days, and a less comprehensive health insurance plan.
Detailed explanation-2: -(i) The workers do not get the full benefit of their efforts since the employee gets a share of the wages of the time saved. (ii) More wastage of raw materials may result due to over-speeding. (iii) The quality of work may decline as the workers want to rush through the work.
Detailed explanation-3: -A minimum wage is a legal minimum for workers. It means workers are guaranteed a certain hourly wage – helping to reduce relative poverty. However, a minimum wage could have potential disadvantages – in particular, there is the risk of creating unemployment as firms cannot afford to employ workers. 1.
Detailed explanation-4: -The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection.