Small-business groups are lobbying to defeat proposed federal legislation that would substantially raise the federal minimum wage. This opposition is surprising since the legislation they oppose would, for the first time, exempt all small businesses from paying any minimum wage.
Which of the following, if true, would best explain the opposition of small-business groups to the proposed legislation?

Question

Examsnet · Accepted Answer

Correct Answer is :  In order to attract workers, small companies must match the wages offered by their larger competitors, and these competitors would not be exempt under the proposed laws.

GMAT Verbal Reasoning Practice Test 6