The US Small Business Administration Defines a Small Business as One

question 33

Multiple Choice

The U.S. Small Business Administration defines a small business as one with fewer than _____ employees.

• A) 250
• B) 385
• C) 500
• D) 600
• E) 700

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Interest Expense

Expenses related to borrowed capital for an entity, which includes loans, bonds, and lines of credit.

Prior Year

Refers to the accounting period immediately preceding the current period, often used for comparative financial analysis.

Common Stockholders' Equity

The portion of equity ownership in a corporation that belongs to common shareholders, including retained earnings and contributed capital.