You could have 100 part-time employees and contractors and be under $1M total revenue. Not common, but some kind of tutoring agency maybe.
It doesn't hurt to cover all bases. The author thought of three qualities that would define a large business and AND'ed their negations to define a small business. It doesn't really matter if #2 almost always implies #1.
How's that my problem? I don't owe you a profit! More, we don't owe you anything, the obligation at best runs the other direction.
Users of open software are making use of work of others frequently without payment or any similar contribution to that work. At a certain scale, and that point can be defined in arbitrarily, your ability to free ride on the work of others ends. I don't how that is a controversial point.
It doesn't hurt to cover all bases. The author thought of three qualities that would define a large business and AND'ed their negations to define a small business. It doesn't really matter if #2 almost always implies #1.