A company qualifies as small if it meets two out of three thresholds. Which option correctly states these thresholds?

A company qualifies as small if it meets two out of three thresholds. Which option correctly states these thresholds?

• A. Turnover less than £6.5m; Balance sheet less than £3.26m; Employees <= 50
• B. Turnover less than £10m; Balance sheet less than £5m; Employees <= 100
• C. Turnover less than £2m; Balance sheet less than £1m; Employees <= 20
• D. Turnover less than £6.5m; Balance sheet less than £3.26m; Employees <= 100

Answer: (A)

The concept being tested is how a “small” company is defined by thresholds across three measures: turnover, balance sheet total, and number of employees. A company qualifies if it stays below the specified ceiling in at least two of these three measures. The correct thresholds are turnover not more than £6.5 million, balance sheet total not more than £3.26 million, and not more than 50 employees. This option matches those numbers exactly, and you can still meet more than two thresholds—doing so also qualifies you as small. The other sets use values that don’t align with these established ceilings (for example, one sets 100 employees, which exceeds the limit; another uses much smaller turnover and balance-sheet figures; another uses 10m/5m with 100 employees). That’s why they aren’t correct representations of the standard thresholds.

The concept being tested is how a “small” company is defined by thresholds across three measures: turnover, balance sheet total, and number of employees. A company qualifies if it stays below the specified ceiling in at least two of these three measures.

The correct thresholds are turnover not more than £6.5 million, balance sheet total not more than £3.26 million, and not more than 50 employees. This option matches those numbers exactly, and you can still meet more than two thresholds—doing so also qualifies you as small.

The other sets use values that don’t align with these established ceilings (for example, one sets 100 employees, which exceeds the limit; another uses much smaller turnover and balance-sheet figures; another uses 10m/5m with 100 employees). That’s why they aren’t correct representations of the standard thresholds.