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A company had to change its wage structure due to change in minimum wage law. Which dimension is related?

Answer and explanation

Correct answer: Legal dimension

The direct answer is A, Legal dimension. A law is a rule made by the government, and a minimum-wage law fixes the lowest lawful payment to workers. Reasoning: the law changes; the company must obey it; wages and the wage structure therefore have to be revised. This is a legal influence, even though the change may also affect costs. Option A is correct because it names the source of the obligation. Option B, Economic dimension, concerns income, inflation, interest rates, demand and costs; cost may change here, but the question focuses on the wage law. Option C, Social dimension, concerns customs, values, lifestyles and population patterns, not a statutory rule. Option D, Technological dimension, concerns machinery, software and technical methods, which are absent. Memory cue: words such as Act, law, regulation, court order or legal amendment usually indicate the legal dimension.

Related tags

Business-Environment Dimensions Legal Wage-LawDimensions Of Business EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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