The European Commission's Definition of SME Is Which of the Following

question 17

Multiple Choice

The European Commission's definition of SME is which of the following?

• A) Small company with less than 50 employees
• B) Medium company with less than 500 employees
• C) Small balance sheet with less than 25 million in assets
• D) Medium balance sheet with less than 75 million in assets

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Definitions:

Diversification

The strategy of spreading investments across various financial assets to reduce exposure to risk.

Uncorrelated

Refers to two or more variables that do not have any predictive relationship with each other.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Positively Correlated

A term describing two variables that move in the same direction, such that when one variable increases, the other also increases.