Which two characteristics generally define a small business?

• A. Between 500 and 2,500 employees
• B. No more than $200,000 in sales
• C. Less than $35.5 million revenue and Fewer than 1,500 employees
• D. Non-profit

Answer: (C)

Small businesses are typically defined by both how much they sell and how many people they employ. A practical, widely used way to classify a business is to keep revenue below a certain level and have a relatively small workforce. The option that specifies revenue under 35.5 million and fewer than 1,500 employees fits this dual-criterion definition and reflects common general guidelines used in practice. The other choices don’t align with this two-faceted size standard: one suggests too large a staff to be considered small; another relies on revenue alone at an unrealistically low amount; and the last describes a non-profit, which isn’t a size definition.