WaterPod Transport is the only company in the world to manufacture and

QUESTION

WaterPod Transport is the only company in the world to manufacture and sell personal submarines. The company is owned by a wealthy entrepreneur and has 50 employees and annual sales revenue of $3 million.

Would the U.S. Small Business Administration consider WaterPod to be a small business?
What will be an ideal response?

ANSWER

Answer: No, the SBA would not consider WaterPod Transport to be a small business because the company is dominant in its field of operation. No other company makes or sells personal underwater transportation.
Explanation: A company must not be dominant in its field of operation in order for it to be defined as a small business by the SBA.