Final answer:
Small businesses constitute 98 percent of all firms and hire approximately half of the private sector workforce in the United States. The correct answer to the question is option (b) 98.
Step-by-step explanation:
Small businesses are a fundamental component of the U.S. economy and play a significant role in the employment sector. According to data from the U.S. Census Bureau in 2010, small businesses make up a considerable percentage of all firms and are responsible for a large share of private sector employment. Despite the public focus often being on large corporations like Wal-Mart, Microsoft, or General Motors, the majority of U.S. firms are much smaller. In fact, the vast majority of American firms have fewer than 20 employees. Slightly less than half of all workers in private firms are employed by the 17,000 large firms that have more than 500 workers. In contrast, another 35% of workers are employed at firms with fewer than 100 workers, illustrating the expansive reach of smaller-scale businesses. These include diverse services such as dental practices, legal firms, and businesses involved in lawn mowing or house cleaning.
Furthermore, these figures do not account for the millions of "non-employer" businesses where the owners are not officially paid wages but earn income directly from their business ventures. This indicates that the impact of small businesses on the economy might be even greater than the employment statistics suggest. Considering the information provided, it becomes clear that small businesses represent a vital segment of the economy, both in terms of firm numbers and employment opportunities.
Now, responding to the specific question: Small businesses represent 98 percent of all firms and employ about half of all private sector employees. Therefore, the correct option is (b) 98.