Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which of the following is NOT a characteristic of a small business?

1. Operating independently

2. Not being dominant in its field

3. Having high annual receipts

4. Meeting certain size standards

The correct answer is: Having high annual receipts

Having high annual receipts is not a characteristic of a small business because small businesses are typically defined by their revenue and size standards set by regulatory bodies. The definition of a small business includes specific thresholds for annual receipts that vary by industry. A small business generally operates without having substantial market power or revenue compared to larger enterprises. In contrast, operating independently is a hallmark of small businesses, as they typically do not have corporate chains or franchises dictating their operations. Moreover, not being dominant in their field emphasizes that small businesses often compete with larger entities without controlling a significant market share. Lastly, meeting certain size standards is crucial in classifying a business as small, which usually encompasses aspects such as employee count and revenue limits. Understanding these definitions helps distinguish the traits that define small businesses clearly.