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Minimum wage law changed and the company wage policy changed. Which dimension is this?

Answer and explanation

Correct answer: Legal dimension

The governing concept is that the legal environment consists of laws, rules, regulations and court decisions that influence business decisions. A minimum-wage law is a government rule governing the lowest permissible payment to employees. When that law changes, the company must revise its wage policy to remain compliant; therefore the situation belongs to the legal dimension, making option C correct. Option A concerns factors such as inflation, interest rates and income levels. Option B concerns social values, customs and demographic patterns, while option D concerns innovations and production technology. Although wages affect costs, the stated cause is specifically a change in law.

Related tags

Business EnvironmentLegal EnvironmentWage LawBusiness StudiesClass 12 Mcq

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