16 Analyse the disadvantages of fringe benefits to a business, offered by a car manufacturing company. [6]

[Sir Afzal Shad]

Q16 Analyse the disadvantages of fringe benefits to a business, offered by a car manufacturing company. [6]

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Possible Structure
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Kumail Alvi]

[KN] Extra Costs
[AN] It can be costly for the company to offer fringe benefits like company cars.
[AN+] Money that could be used to fund other aspects of the business can be severely impacted by the cost of buying, maintaining, and insuring a fleet of automobiles.

[KN] Inequity Among Employees
[AN] Offering perks to employees, such as company cars, could make them feel unfairly treated. While those who do not receive them might feel unfairly treated, those who do may be more motivated or satisfied.
[AN+] This may result in problems with employee motivation and morale.

[Syed Mustafa Ali]

[KN] High costs
[AN] Providing fringe benefits, such as company cars, can be expensive for the business.
[AN+] The costs of purchasing or leasing vehicles, insurance, maintenance, and fuel can add up, impacting the company's budget and profitability and result In business making less profit.

[KN] Less flexibility
[AN] Offering fringe benefits like company cars may limit employees' choices.
[AN+] Some employees may prefer other benefits over a car, and not having the flexibility to choose can lead to dissatisfaction.

[ayyan ali]

[kn] brand image and public perception
[AN] negative events or controversies envolving the car manufacturer such as product recalls or ethical concerns can tarnish the reputation of businesses assosiated with them
[AN+]businesses may suffer from guilt and assosiation with them

[KN]regulatory compliance
[AN]stringet environmental and safety regulations in the automotive industry can impact both the manufacturing process and the product themselves.
[AN+] businesses may find challenging o adopt to evolving regulations potentialy facing fines and legal issues if the he use did not comply with the update standerds

[Hadia Zia]

[KN] Jealousy may arise from the employees who are not able to enjoy such benefits.
[AN] This will create a negative working environment.
[AN+] Alot of time must also be wasted if business tries to solve such problems.

[KN] Increase in the costs.
[AN] Providing fringe benefits can be an expensive operation which can lead to reduced profit margins too for the CM company.
[AN+] Thus the company may be get financially weak and can have liquidity issues.

[hafsa kashif]

[kn] jealousy factor may occur
[an] those employees who haven't gotten such benefits will feel left out and thus it creates a negative work environment
[an+] thus time will be wasted if focusing on solving such conflicts
[kn] higher costs
[an] providing fringe benefits rather then salaries can be an expensive operation which can reduce profit margins
[an+] leading to financial weakness and liquidity issues

[Salman Khalid]

[KN]costly to the business
[AN]it reduces the available funds for investment in research, development or innovative technologies that could enhance the companys competitive edge.
[AN+]restricts the company's ability to allocate resources to critical areas hindering overall growth and development.

[KN]affects employee morale
[AN]fostering an environment of distrust and decreased employee engagement it might lead to increased turnover rates
[AN+]low morale affects productivity and innovation