Question

Which of the following is a false statement about small business?

a) Small businesses account for more than 50 percent of GDP (Gross Domestic Product).
b) The vast majority of nonfarm businesses in the U.S. are considered small.
c) The first job for most Americans is unlikely to be in a small business.
d) The majority of the country's new jobs are in small business.

Answer 1

The answer is c) The first job for most Americans is unlikely to be in a small business.

Step-by-step explanation:

This statement is false. In reality, many Americans begin their careers by working in small businesses. Small businesses are significant contributors to job creation and play a crucial role in providing employment opportunities for individuals entering the workforce.

Answer 2

The false statement is that small businesses account for more than 50 percent of GDP, as they are instrumental to the economy but do not exceed this portion of the GDP.

Step-by-step explanation:

The correct answer to the question is that the statement "Small businesses account for more than 50 percent of GDP (Gross Domestic Product)." is the false statement. While small businesses are indeed a critical part of the U.S. economy, contributing to job creation and economic diversity, they do not account for more than half of the GDP; major economic sectors such as manufacturing and industry play a huge role in the GDP as well. The vast majority of businesses in the United States are indeed considered small, with most American firms having fewer than 20 employees. Additionally, a significant proportion of the workforce is employed by small businesses, with around 35% working at firms with fewer than 100 workers and many first jobs being in small business platforms.

Another relevant and interesting fact about small businesses is that there are millions of "non-employer" businesses. These are typically single-owner or partnership enterprises without official wages or salaries, but rather income that relies on earnings from the business.