What characterizes a micro company?

A micro company is characterized by a financial turnover of £1 million or less. This definition aligns with various frameworks and guidelines, particularly in the context of financial regulations and small business categorizations.

Micro companies are typically very small businesses that operate with limited resources and a small scale of business activity. The specific turnover limit helps distinguish these companies from small and medium enterprises (SMEs), which have higher turnover thresholds.

While other definitions involve employee counts or balance sheet totals, they apply to different classifications such as small or medium companies. The distinction for a micro company focuses primarily on its financial turnover. Thus, option B correctly identifies the essential characteristic that classifies a micro company within the business landscape.