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Directions: Read the passage carefully and answer the question as follow.
Federal efforts to aid minority businesses began in the
1960’s when the Small Business Administration (SBA)
began making federally guaranteed loans and govern-
ment-sponsored management and technical assistance
(5) available to minority business enterprises. While this
program enabled many minority entrepreneurs to
form new businesses, the results were disappointing,
since managerial inexperience, unfavorable locations,
and capital shortages led to high failure rates. Even 15
(10) years after the program was implemented, minority
business receipts were not quite two percent of the national
economy’s total receipts.
Recently federal policymakers have adopted an
approach intended to accelerate development of the
(15) minority business sector by moving away from directly
aiding small minority enterprises and toward supporting
larger, growth-oriented minority firms through interme-
diary companies. In this approach, large corporations
participate in the development of successful and stable
(20) minority businesses by making use of government-
sponsored venture capital. The capital is used by a
participating company to establish a Minority Enterprise
Small Business Investment Company or MESBIC. The
MESBIC then provides capital and guidance to minority
(25) businesses that have potential to become future suppliers
or customers of the sponsoring company.
MESBIC’s are the result of the belief that providing
established firms with easier access to relevant manage-
ment techniques and more job-specific experience, as
(30) well as substantial amounts of capital, gives those firms
a greater opportunity to develop sound business founda-
tions than does simply making general management
experience and small amounts of capital available.
Further, since potential markets for the minority busi-
(35) nesses already exist through the sponsoring companies,
the minority businesses face considerably less risk in
terms of location and market fluctuation. Following
early financial and operating problems, sponsoring
corporations began to capitalize MESBIC’s far above
(40) the legal minimum of $500,000 in order to generate
sufficient income and to sustain the quality of manage-
ment needed. MESBIC’c are now emerging as increas-
ingly important financing sources for minority enter-
prises.
(45) Ironically, MESBIC staffs, which usually consist of
Hispanic and Black professionals, tend to approach
investments in minority firms more pragmatically than
do many MESBIC directors, who are usually senior
managers from sponsoring corporations. The latter
(50) often still think mainly in terms of the “social responsi-
bility approach” and thus seem to prefer deals that are
riskier and less attractive than normal investment criteria
would warrant. Such differences in viewpoint have pro-
duced uneasiness among many minority staff members,
(55) who feel that minority entrepreneurs and businesses
should be judged by established business considerations.
These staff members believe their point of view is closer
to the original philosophy of MESBIC’s and they are
concerned that, unless a more prudent course is fol-
lowed, MESBIC directors may revert to policies likely
to re-create the disappointing results of the original SBA
approach.
Q. Which of the following statements about the SBA program can be inferred from the passage?
1960’s when the Small Business Administration (SBA)
began making federally guaranteed loans and govern-
ment-sponsored management and technical assistance
(5) available to minority business enterprises. While this
program enabled many minority entrepreneurs to
form new businesses, the results were disappointing,
since managerial inexperience, unfavorable locations,
and capital shortages led to high failure rates. Even 15
(10) years after the program was implemented, minority
business receipts were not quite two percent of the national
economy’s total receipts.
Recently federal policymakers have adopted an
approach intended to accelerate development of the
(15) minority business sector by moving away from directly
aiding small minority enterprises and toward supporting
larger, growth-oriented minority firms through interme-
diary companies. In this approach, large corporations
participate in the development of successful and stable
(20) minority businesses by making use of government-
sponsored venture capital. The capital is used by a
participating company to establish a Minority Enterprise
Small Business Investment Company or MESBIC. The
MESBIC then provides capital and guidance to minority
(25) businesses that have potential to become future suppliers
or customers of the sponsoring company.
MESBIC’s are the result of the belief that providing
established firms with easier access to relevant manage-
ment techniques and more job-specific experience, as
(30) well as substantial amounts of capital, gives those firms
a greater opportunity to develop sound business founda-
tions than does simply making general management
experience and small amounts of capital available.
Further, since potential markets for the minority busi-
(35) nesses already exist through the sponsoring companies,
the minority businesses face considerably less risk in
terms of location and market fluctuation. Following
early financial and operating problems, sponsoring
corporations began to capitalize MESBIC’s far above
(40) the legal minimum of $500,000 in order to generate
sufficient income and to sustain the quality of manage-
ment needed. MESBIC’c are now emerging as increas-
ingly important financing sources for minority enter-
prises.
(45) Ironically, MESBIC staffs, which usually consist of
Hispanic and Black professionals, tend to approach
investments in minority firms more pragmatically than
do many MESBIC directors, who are usually senior
managers from sponsoring corporations. The latter
(50) often still think mainly in terms of the “social responsi-
bility approach” and thus seem to prefer deals that are
riskier and less attractive than normal investment criteria
would warrant. Such differences in viewpoint have pro-
duced uneasiness among many minority staff members,
(55) who feel that minority entrepreneurs and businesses
should be judged by established business considerations.
These staff members believe their point of view is closer
to the original philosophy of MESBIC’s and they are
concerned that, unless a more prudent course is fol-
lowed, MESBIC directors may revert to policies likely
to re-create the disappointing results of the original SBA
approach.
Q. Which of the following statements about the SBA program can be inferred from the passage?
- a)The maximum term for loans made to recipient businesses was 15 years.
- b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.
- c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.
- d)Recipient businesses were encouraged to relocate to areas more favorable for business development.
- e)The capitalization needs of recipient businesses were assessed and then provided for adequately.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Directions: Read the passage carefully and answer the question as foll...
C is the best answer. This question asks you to draw an inference about the SBA program. Although the passage does not actually state that the failure rate for SBA recipient businesses was higher than anticipated, in the first paragraph the author does sate that the results of the SBA program were disappointing, in part because of the high failure rate among SBA-sponsored businesses. From this it can be inferred that the anticipated failure rate was lower than the actual rate.
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Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer?
Question Description
Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer?.
Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
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Here you can find the meaning of Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Directions: Read the passage carefully and answer the question as follow.Federal efforts to aid minority businesses began in the1960’s when the Small Business Administration (SBA)began making federally guaranteed loans and govern-ment-sponsored management and technical assistance(5) available to minority business enterprises. While thisprogram enabled many minority entrepreneurs toform new businesses, the results were disappointing,since managerial inexperience, unfavorable locations,and capital shortages led to high failure rates. Even 15(10) years after the program was implemented, minority business receipts were not quite two percent of the nationaleconomy’s total receipts.Recently federal policymakers have adopted anapproach intended to accelerate development of the(15) minority business sector by moving away from directlyaiding small minority enterprises and toward supportinglarger, growth-oriented minority firms through interme-diary companies. In this approach, large corporationsparticipate in the development of successful and stable(20) minority businesses by making use of government-sponsored venture capital. The capital is used by aparticipating company to establish a Minority EnterpriseSmall Business Investment Company or MESBIC. TheMESBIC then provides capital and guidance to minority(25) businesses that have potential to become future suppliersor customers of the sponsoring company.MESBIC’s are the result of the belief that providingestablished firms with easier access to relevant manage-ment techniques and more job-specific experience, as(30) well as substantial amounts of capital, gives those firmsa greater opportunity to develop sound business founda-tions than does simply making general managementexperience and small amounts of capital available.Further, since potential markets for the minority busi-(35) nesses already exist through the sponsoring companies, the minority businesses face considerably less risk interms of location and market fluctuation. Followingearly financial and operating problems, sponsoringcorporations began to capitalize MESBIC’s far above(40) the legal minimum of $500,000 in order to generatesufficient income and to sustain the quality of manage-ment needed. MESBIC’c are now emerging as increas-ingly important financing sources for minority enter-prises.(45) Ironically, MESBIC staffs, which usually consist ofHispanic and Black professionals, tend to approachinvestments in minority firms more pragmatically thando many MESBIC directors, who are usually seniormanagers from sponsoring corporations. The latter(50) often still think mainly in terms of the “social responsi-bility approach” and thus seem to prefer deals that areriskier and less attractive than normal investment criteriawould warrant. Such differences in viewpoint have pro-duced uneasiness among many minority staff members,(55) who feel that minority entrepreneurs and businessesshould be judged by established business considerations.These staff members believe their point of view is closerto the original philosophy of MESBIC’s and they areconcerned that, unless a more prudent course is fol-lowed, MESBIC directors may revert to policies likelyto re-create the disappointing results of the original SBAapproach.Q.Which of the following statements about the SBA program can be inferred from the passage?a)The maximum term for loans made to recipient businesses was 15 years.b)Business loans were considered to be more useful to recipient businesses than was management and technical assistance.c)The anticipated failure rate for recipient businesses was significantly lower than the rate that actually resulted.d)Recipient businesses were encouraged to relocate to areas more favorable for business development.e)The capitalization needs of recipient businesses were assessed and then provided for adequately.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice GMAT tests.
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