What defines a small business in the context of employee and revenue criteria?

The definition of a small business is often established based on criteria related to the number of employees and the revenue generated over a specified period. In many contexts, including regulatory frameworks, a small business is defined as one that employs fewer than 100 individuals and has annual revenues that do not exceed $4 million. This classification helps identify businesses that typically have fewer resources and may benefit from specific assistance or regulatory considerations, such as access to loans or grants designed for small enterprises.

When looking at the selected answer, it fits this commonly accepted definition since it specifies a threshold of less than 100 employees and less than $4 million in revenue. This matches the requirements laid out by various governmental entities that provide support and resources for small businesses.

Understanding this classification is important for ensuring compliance with relevant laws, accessing small business programs, and recognizing the role these businesses play in the economy. Other options, while they may state different thresholds, do not align as well with the widely accepted definitions used in economic guidelines and support structures for small businesses.