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If a company pays workers less than minimum wage, what type of problem is this?

Answer and explanation

Correct answer: Legal problem

Paying workers below the minimum wage violates labour laws and statutory provisions, so it is a legal problem. A financial difficulty may be an internal business issue, but it does not justify breaking the law. Exam tip: Link rules on wages, working hours, and employee safety with the legal environment.

Related tags

Business EnvironmentLegal EnvironmentLabour LawsMinimum WageClass 12 Business StudiesBusiness StudiesClass 12 Mcq

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