What consequence may small companies face if the new law is enacted?

The correct choice indicates a serious potential consequence for small companies if a new law is enacted. Many laws, especially those related to regulations, labor, taxes, or compliance, can impose additional burdens on smaller businesses that may lack the resources to manage those new requirements effectively. Costs associated with compliance, such as legal fees or investments in new systems, can significantly impact their financial stability. Consequently, some small companies may be forced to reduce operations or even shut down entirely if they cannot adapt to these changes. This outcome underscores the vulnerability of smaller enterprises in response to legislation that may not account for their unique challenges compared to larger corporations.