Which statement about business licenses is correct?

• A. Only large firms require licenses
• B. All businesses need a license locally
• C. COA stands for Certificate of Authorization and is unrelated to registration
• D. Corporation ID numbers are issued by local county clerk

Answer: (B)

Locally issued licenses exist to ensure that any business operating within a city or county follows the local rules for safety, zoning, health, and taxes. Because of that, most businesses—big or small, brick‑and‑mortar or home-based—need some form of local license to operate legally. The license process helps the jurisdiction know what is operating where and for what purposes, and licenses are typically required before starting and must be renewed periodically.

That’s why the statement that all businesses need a license locally is the best fit. The other points don’t align with how licensing generally works: licensing isn’t limited to large firms; small and home businesses often need local licenses as well. A Certificate of Authorization can be a real requirement in certain professions and is related to professional registration rather than being entirely unrelated. And corporate IDs are usually issued by state-level agencies (like the Secretary of State) or federal entities, not by the local county clerk.