The Size Standard for Small Business Used in the Textbook

question 12

Multiple Choice

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.

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Definitions:

Labor Agreement

A contractual agreement between an employer and a group of employees (often represented by a union) regarding terms of employment.

Break-Even Analysis

An evaluation to determine the point at which revenues and expenses are equal, and no net loss or gain is achieved.

Variable Costs

Costs that change in proportion to the level of activity or volume of output in a business, such as materials and labor costs.

Break-Even Point

The point at which total cost and total revenue are equal, meaning that the business makes neither a profit nor a loss.