GMAT Verbal Reasoning Practice Test 6

Question : 13 of 100

Marks: +1, -0

Under the current federal minimum-wage law, most small businesses are required to pay no less than the minimum wage to their employees.
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.
The exact number of companies that are currently required to pay no less than the minimum wage but that would be exempt under the proposed laws is unknown.
Some states have set their own minimum wages – in some cases, quite a bit above the level of the minimum wage mandated by current federal law – for certain key industries.
Service companies make up the majority of small businesses and they generally employ more employees per dollar of revenues than do retail or manufacturing businesses.

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