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This question is about careers.
How are businesses classified?
Businesses are classified based on various criteria such as their size, structure, and industry sector.
One of the most common ways to classify businesses is by their size. This can be determined by the number of employees, annual sales, or total assets. In the United States, the Small Business Administration defines a small business as one with fewer than 500 employees.
Businesses can also be classified by their structure. The structure of a business refers to its legal form. Some common types include sole proprietorships, partnerships, corporations, and limited liability companies (LLCs).
Lastly, businesses are often classified based on their industry sector. This refers to the type of economic activity they engage in. There are numerous sectors including agriculture, manufacturing, retail, and services, among others.
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