The size standard for small business used in the textbook would exclude firms that
A) have more than 10 employees.
B) have more than 100 employees.
C) have more than two owners.
D) sell products of services outside the local community.

Question

Quizplus · Accepted Answer

According to the textbook, the size standard for small business varies by industry, but for most industries, a firm is considered small if it has fewer than 500 employees. Therefore, option A and C are incorrect. Option D is also incorrect as selling products or services outside the local community does not impact the definition of a small business. Option B is the correct choice as it suggests that a small business cannot have more than 100 employees, which would exclude some businesses that otherwise meet the small business definition.

The Size Standard for Small Business Used in the Textbook