Final answer:
False, The statement that small organizations usually offer better salaries due to having more resources is false. Larger organizations tend to provide higher wages and benefits because they can attract and raise financial capital more easily and tend to be better resourced to pay higher salaries.
Step-by-step explanation:
The statement that small organizations usually have more resources, which enable them to offer better salaries than large organizations is false. Typically, multinational corporations and larger firms have the capability to provide higher wages and better benefits compared to local small businesses, particularly in developing countries. These larger entities can attract financial capital more easily, are slightly larger in size, making them more likely to attract top talent and have an easier time raising financial capital. Meanwhile, small-scale businesses, including non-employer businesses, often compensate their employees less and provide whatever they can earn.
Wages are typically determined by the supply and demand for specific skills and talents in the workforce. During times of high unemployment, employees may accept lower wages, thus enabling businesses to maintain or increase profits without raising wages. This shows that the statement in question does not hold true as a general rule.
While it is true that small businesses make up a significant portion of the economy, with 35% of workers in firms with fewer than 100 workers, they do not typically offer better salaries than their larger counterparts who have greater resources at their disposal and the capability to pay higher wages due to their size and financial capacity.