4 ms·
Like most definitions in legal terms, the definition of "small business" in the license is functional and context-specific. It needn't be a good dictionary defi
by kemitchell 5y ago
Like most definitions in legal terms, the definition of "small business" in the license is functional and context-specific. It needn't be a good dictionary definition of "small business" for use elsewhere.
Functionally, each of the prongs of Big Time's definition works as an independent tripwire. Cross one, the license no longer covers your business and you need to reach out for a deal. This approach, based on revenue, headcount, and capital, isn't unique to Big Time. It comes up in laws and regulations, as well.
With all that in mind, I don't think it's important for the figures, read together, to add up to a single, consistent picture of any one hypothetical business. I don't think they need to be convincingly proportional. Rather, each needs to prevent "end runs" around the others. If you're running accounting losses but paying lots of people, you need to make a deal. If you're three founders in a garage who haven't even tried to charge any customers yet, but just raised $3m in venture capital, you need to do a deal.
- Closi 5y agoPeople are just questioning it because it seems like one of the 'tripwires' is a significantly higher barrier. Like if I said "I will give you £100 if you either give me a high-five, or if you punch yourself in the face until you bleed", they are independent tripwires but you might ask why the second was included.
- torstenvl 5y agoI'm not an accountant but my understanding of "revenue" as a figure is not impacted by accounting losses. Wouldn't you have to be running the entire company on debt for this to be possible? And if so, what is the point of trying to get money from them?