Final answer:
The claim of 27.8 million small businesses in the U.S. with fewer than 500 employees is false; the U.S. Census Bureau reported 5.7 million firms with employees as of 2010.
Step-by-step explanation:
The statement that there are 27.8 million small businesses in the United States with fewer than 500 employees is false. According to the information provided, as of 2010, the U.S. Census Bureau counted 5.7 million firms with employees. Additionally, the data refers to 17,000 large firms which employ more than 500 workers, whereas another 35% of workers are at firms with fewer than 100 workers. These statistics describe a range of business sizes in the private sector, extending to even smaller 'non-employer' businesses owned by individuals or few partners, which are not captured by the statistic of 27.8 million.