Describe what a small business is.SolutionSmall bussiness is a.pdf

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Describe what a perfectly competitive market is Solution In perfectly competitive market, there absence of rivalarily among the firms. There are large number of buyers and sellers in this market and all firms produce homogeneous products. Agricultural sector is an example of perfectly competitive market. following are the features of perfectly competitive market: 1. Large number of buyers and sellers in the market 2. Product is homogenous 3. There is free entry and exit to the firms 4. Perfect knowledge of market 5. Perfect mobility of resources 6. Firms are price takers. Since the price is decided by the demand and supply forces.

Describe what a small business is.
Solution
Small bussiness is a privately owned and operated business.
Usually a small business has a small number of employees. The Small business Administration
(SBA) is in charge of of the legal definition of small business in the United States, setting a
criteria that includes number of employees or annual receipts
The following criteria is used by the SBA to define a small business:
Please note that each country has its own regulatory agency that control small business, the
information below only applies to US.
Source:
SBA.gov: The US Small Business Administration
https://www.sba.gov/

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