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

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

• A. Less than 20 employees
• B. Limited geographic reach
• C. Single ownership structure
• D. High capital investment

Answer: (D)

The characteristic that is identified as not being typical of a small business is high capital investment. Small businesses generally operate with lower capital requirements compared to larger corporations. They tend to have limited resources and often rely on smaller amounts of funding to start and maintain their operations, focusing on local markets and manageable scales of production or service delivery. While small businesses can vary greatly in terms of their structures and operations, characteristics such as having less than 20 employees, limited geographic reach, and a single ownership structure are common. Small businesses are usually characterized by their strong ties to local communities and direct involvement of owners in daily operations, which often leads to limited expansion and lower overhead costs. They typically require minimal investment to start, making high capital investment atypical for their nature.

The characteristic that is identified as not being typical of a small business is high capital investment. Small businesses generally operate with lower capital requirements compared to larger corporations. They tend to have limited resources and often rely on smaller amounts of funding to start and maintain their operations, focusing on local markets and manageable scales of production or service delivery.

While small businesses can vary greatly in terms of their structures and operations, characteristics such as having less than 20 employees, limited geographic reach, and a single ownership structure are common. Small businesses are usually characterized by their strong ties to local communities and direct involvement of owners in daily operations, which often leads to limited expansion and lower overhead costs. They typically require minimal investment to start, making high capital investment atypical for their nature.