Question

Which of the following is the most prevalent (highest percentage) form of small business?

Select one:

a. Business employs from 5 to 10 employees.

b. Business employs less than 4 employees.

c. Business employs more than 100 employees.

d. Business employs more than 500 employees.

Answer 1

Answer. (C) Business Employes more than 100 employees.

Small and Mid-Size Enterprise (SME) is the business enterprise that has revenue and the number of employees lower than a certain threshold. SMEs play a major role in most of the economies. Usually, small business enterprises refer to business enterprises that have employees lower than 500. Each country has its own threshold. Basically USA doest have any threshold limit of employees but the European Union (EU) has the threshold limit of employees less than 250 employees in small and mid-sized enterprises. But USA considers manufacturing firms as small and mid sized enterprices less than 500 employees. So the correct answer would be more than 100 employees (less than 500) would be most prevalent form of small business.