Critical Reasoning

Small- business groups are lobbying to defeat proposed federal legislation that would substantially raise the federal 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?

a. Under the current federal minimum -wage law most small businesses are required to pay no less than the minimum wage to their employees.

b. In order to attract workers, small companies must watch the wages offered by their larger competitors,and these competitors would not be exempt under the proposed laws.

c. 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.

d. Some states have set their own minimum wages- in some cases, quiet a bit above the level of minimum wage mandated by current federal law- for certain key industries.

e. Service companies make up the majority of small businesses and they generally employ more employers per dollar of revenues than do retail or manufacturing businesses.

IMO : B

OA is B, Can anyone provide explanation for this question

Small business grps are opposing a legislation which exempts small businesses and raise minimum wage.

A - They shouldn't be opposing for this one as it helps small business.
B - So if they reduce the minimum wage for large companies, small business groups have to reduce much more to attract workers and that would affect their profits.
C - irrelevant
D - Even this is advantageous for small business groups, so they shouldn't be opposing.
E - irrelevant - speaks about majority but the arg is about all of small business groups

IMO B. Hope this helps.