{"id":35695,"date":"2025-06-24T15:09:23","date_gmt":"2025-06-24T15:09:23","guid":{"rendered":"https:\/\/gaviki.com\/blog\/?p=35695"},"modified":"2025-06-24T15:09:24","modified_gmt":"2025-06-24T15:09:24","slug":"which-of-the-following-would-not-be-considered-a-small-business","status":"publish","type":"post","link":"https:\/\/gaviki.com\/blog\/which-of-the-following-would-not-be-considered-a-small-business\/","title":{"rendered":"Which of the following would not be considered a small business"},"content":{"rendered":"\n

Which of the following would not be considered a small business? 1. A woman who sells $52,000 worth of homemade face masks and hair bands on Etsy. 2. A farm that has four part-time employees and $600,000 annual sales to farmers’ markets. 3. A farm with 25 seasonal employees and $3 million annual sales to Whole Foods. 4. A downtown boutique with ten employees and $5 million annual sales. 5. A programmer who writes code for games at home on contract for $250,000 a year.<\/p>\n\n\n\n

The correct answer and explanation is:<\/mark><\/strong><\/p>\n\n\n\n

Correct Answer: 4. A downtown boutique with ten employees and $5 million annual sales.<\/strong><\/p>\n\n\n\n

Explanation:<\/strong><\/p>\n\n\n\n

A small business<\/em> is generally defined by factors such as the number of employees, annual revenue, and industry standards. In the United States, the Small Business Administration (SBA)<\/strong> provides specific thresholds for what qualifies as a small business, and these vary depending on the industry.<\/p>\n\n\n\n

In most industries, especially retail and service-based businesses, a company is considered a small business if it has fewer than 500 employees<\/strong> and annual revenue below certain limits<\/strong>, often between $1 million and $41.5 million<\/strong>, depending on the sector.<\/p>\n\n\n\n

Let\u2019s break down the five options:<\/p>\n\n\n\n

    \n
  1. The woman on Etsy<\/strong> earns $52,000 per year. This is clearly a small business due to both low revenue and self-employment.<\/li>\n\n\n\n
  2. The farm with $600,000 annual sales<\/strong> and four part-time workers is small. Agricultural businesses are typically considered small if they make under $2.5 million to $5 million<\/strong>, depending on the crop or product.<\/li>\n\n\n\n
  3. The farm with $3 million in sales and 25 seasonal employees<\/strong> is still considered a small business in agriculture, which often has higher revenue limits.<\/li>\n\n\n\n
  4. The downtown boutique with $5 million annual sales<\/strong> and ten employees might seem small based on staff size, but in the context of retail trade<\/strong>, this amount can exceed the SBA’s small business revenue threshold for certain retail industries. Many retail categories have a maximum cap between $2 million and $5 million<\/strong>, so this business is likely at or just over the line and may not qualify as a small business, especially in urban centers with higher economic standards.<\/li>\n\n\n\n
  5. The programmer<\/strong> earning $250,000 per year as an independent contractor is self-employed and earns far below small business thresholds. This is considered a small business.<\/li>\n<\/ol>\n\n\n\n

    Therefore, Option 4<\/strong> is the best choice for a business not typically considered a small business<\/strong>, based on its high revenue relative to its sector.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Which of the following would not be considered a small business? 1. A woman who sells $52,000 worth of homemade face masks and hair bands on Etsy. 2. A farm that has four part-time employees and $600,000 annual sales to farmers’ markets. 3. A farm with 25 seasonal employees and $3 million annual sales to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-35695","post","type-post","status-publish","format-standard","hentry","category-quiz-questions"],"_links":{"self":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/35695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/comments?post=35695"}],"version-history":[{"count":1,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/35695\/revisions"}],"predecessor-version":[{"id":35703,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/35695\/revisions\/35703"}],"wp:attachment":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/media?parent=35695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/categories?post=35695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/tags?post=35695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}