There are over 30 million firms in the U.S., of which about 5.8 million are corporations. A mere 35,000 of these corporations have annual sales of over $50 million, and this relative handful of corporations, commonly thought of as “big business”, account for over 80% of total corporate profits in this country. Are those millions of other corporations, sole proprietorships, and partnerships outside of big business fairly insignificant to the U.S. economy then? If not, then what is the importance of these smaller companies to the national economy?
There are over 30 million firms in the U.S., of which about 5.8 million are corporations. A mere 35,000 of these corporations have annual sales of over $50 million, and this relative handful of corporations, commonly thought of as “big business”, account for over 80% of total corporate profits in this country. Are those millions of other corporations, sole proprietorships, and partnerships outside of big business fairly insignificant to the U.S. economy then? If not, then what is the importance of these smaller companies to the national economy?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter2: Economic Systems And The American Economy
Section: Chapter Questions
Problem 24AA
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There are over 30 million firms in the U.S., of which about 5.8 million are corporations. A mere 35,000 of these corporations have annual sales of over $50 million, and this relative handful of corporations, commonly thought of as “big business”, account for over 80% of total corporate profits in this country. Are those millions of other corporations, sole proprietorships, and partnerships outside of big business fairly insignificant to the U.S. economy then? If not, then what is the importance of these smaller companies to the national economy?
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