How many employees must a business have to be considered a small business?

Prepare for the ANZIIF Tier 1 Exam. Familiarize yourself with insurance basics using multiple choice questions, each with hints and explanations. Get ready to succeed!

The classification of a small business often varies by country and industry, but generally, a criterion set by many organizations, including government entities, considers a manufacturing business to qualify as a small business if it has fewer than 100 employees. This threshold reflects the scale of operations typical for smaller manufacturing firms, as they often require more workers than service-oriented businesses due to the nature of their operations.

In this context, answer C correctly identifies that a manufacturing business must have fewer than 100 employees to be classified as a small business. This definition helps ensure that these businesses receive the support they need, understanding their contributions to the economy and job market. The other options indicate lower thresholds, which apply differently depending on the industry, but do not accurately represent the criteria used for manufacturing businesses specifically.

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