Question

Which of the following is not true in relation to labour as a problem for small businesses?

• A. Small business firms cannot afford to pay higher salaries to the employees, which affects employee willingness to work hard and produce more
• B. Productivity per employee is relatively high and employee turn over is generally low
• C. Attracting talented people is a major problem in small business organisations
• D. Unlike large organisations, division of labour cannot be practiced, which results in lack of specialization and concentration

Answer 1

The correct option is B Productivity per employee is relatively high and employee turn over is generally low

Productivity per employee is relatively high and employee turn over is generally low is not true in relation to labour as a problem for small businesses.