For most firms, wage is the largest cost incurred when doing business in the U.S.

A) True

B) False

True, wages are the largest cost incurred by firms doing business in the U.S.

Due to the high cost of living in the country, the U.S. has a higher minimum wage compared to other countries, thus making labor in the country more expensive. Generally, even in other countries, wages and benefits also take a huge portion of their money because, without a good team, it is unlikely that the business will prosper. Therefore, companies use attractive salaries and benefits to employees in order to keep them motivated and more productive. The other huge cost incurred by businesses is rent or mortgage for the office premises.