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There are scaled (adjustments) factors applied to businesses based upon their number of employees. Larger firms receive a smaller reduction factor.

A. True
B. False

1 Answer

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Final answer:

The statement is true, as laws and regulations often change requirements for businesses as they grow, with larger firms facing different, sometimes more stringent, obligations than smaller ones, as seen in France's labor code.

Step-by-step explanation:

The statement that there are scaled adjustments applied to businesses based on their number of employees, with larger firms receiving a smaller reduction factor, is true. For instance, labor laws in some countries, including France, result in significant changes in the obligations of a company once it reaches a certain size. French companies with 50 or more employees face more stringent requirements, such as creating worker councils and implementing profit sharing, as compared to those with fewer employees. This can discourage companies from expanding beyond certain employee thresholds and impact hiring practices, effectively creating a disincentive for growing their workforce beyond specific limits.

Firms come in various sizes, and the structure of reductions or legal requirements often changes as firms grow in employee number. While not stated explicitly in the reference material, the reduced factors or adjustments based on the number of employees can be inferred from various national labor laws that impose different responsibilities on businesses as they scale up. Therefore, policies and legal requirements can indeed be scaled according to the size of a firm, affecting their operating environment and strategies.

User Oleksandr Albul
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