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PASSAGE:
Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.
Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small company's efforts must soon result in orders, or both the morale and the financial health of the business will suffer.
A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.
Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors? 
  • a)
    Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future. 
  • b)
    Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts. 
  • c)
    The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’s 
  • d)
    Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible. 
  • e)
    The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
PASSAGE:Recent years have brought minority-owned businesses in the Uni...
- The correct answer is C.
- The passage highlights that corporations responded significantly to working with minority subcontractors in the 1970s.
- It mentions a substantial increase in corporate contracts with minority businesses during that time.
- Projections estimate a continued rise in corporate contracts with minority businesses into the 1980s and beyond.
- This indicates that the significant corporate response in the 1970s is likely to be sustained and potentially increased throughout the 1980s.
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Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms field with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises. Corporate response appears to have been substantial. Accoring to figures collected in 1977, the total of corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of corporate contracts with minority business for the early 1980’s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, there after, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneur’s who get requests for elaborate formal estimates and bids. Both consume valuable time and resources and a small cmpany’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may-seek to cash inon the increasing apportion-ments through formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming – and remaining dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q.Which of the following if true, would most weaken the author’s assertion that, in 1970’s, corporate response to federal requirements (lines 18-19) was substantial?

PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms field with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises. Corporate response appears to have been substantial. Accoring to figures collected in 1977, the total of corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of corporate contracts with minority business for the early 1980’s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, there after, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneur’s who get requests for elaborate formal estimates and bids. Both consume valuable time and resources and a small cmpany’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may-seek to cash inon the increasing apportion-ments through formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming – and remaining dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. It can be inferred from the passage that, compared with the requirements of law, the percentage goals set by “some federal and local agencies” are

PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms field with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises. Corporate response appears to have been substantial. Accoring to figures collected in 1977, the total of corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of corporate contracts with minority business for the early 1980’s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, there after, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneur’s who get requests for elaborate formal estimates and bids. Both consume valuable time and resources and a small cmpany’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may-seek to cash inon the increasing apportion-ments through formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming – and remaining dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The passage supplies information that would answer which of the following questions?

PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms field with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises. Corporate response appears to have been substantial. Accoring to figures collected in 1977, the total of corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of corporate contracts with minority business for the early 1980’s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, there after, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneur’s who get requests for elaborate formal estimates and bids. Both consume valuable time and resources and a small cmpany’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may-seek to cash inon the increasing apportion-ments through formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming – and remaining dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. According to the passage, civil rights activists maintain that one disadvantage under which minority owned businesses have traditionally had to labor is that they have

PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities-as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms field with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises. Corporate response appears to have been substantial. Accoring to figures collected in 1977, the total of corporate contracts with minority business rose from $77 to $1. 1 billion in 1977. The projected total of corporate contracts with minority business for the early 1980’s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, there after, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneur’s who get requests for elaborate formal estimates and bids. Both consume valuable time and resources and a small cmpany’s efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may-seek to cash inon the increasing apportion-ments through formation of joint ventures with minority-owned concerns, of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming – and remaining dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The passage suggests that the failure of a large business to have its bids for subcontracts results quickly in order might cause it to

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PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer?
Question Description
PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer? for GRE 2024 is part of GRE preparation. The Question and answers have been prepared according to the GRE exam syllabus. Information about PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for GRE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer?.
Solutions for PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for GRE. Download more important topics, notes, lectures and mock test series for GRE Exam by signing up for free.
Here you can find the meaning of PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice PASSAGE:Recent years have brought minority-owned businesses in the United States unprecedented opportunities—as well as new and significant risks. Civil rights activists have long argued that one of the principal reasons why Blacks, Hispanics, and other minority groups have difficulty establishing themselves in business is that they lack access to the sizable orders and subcontracts that are generated by large companies. Now Congress, in apparent agreement, has required by law that businesses awarded federal contracts of more than $500,000 do their best to find minority subcontractors and record their efforts to do so on forms filed with the government. Indeed, some federal and local agencies have gone so far as to set specific percentage goals for apportioning parts of public works contracts to minority enterprises.Corporate response appears to have been substantial. According to figures collected in 1977, the total of corporate contracts with minority businesses rose from $77 million to $1.1 billion in 1977. The projected total of corporate contracts with minority businesses for the early 1980s is estimated to be over $3 billion per year with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending themselves financially, since most are small concerns and, unlike large businesses, they often need to make substantial investments in new plants, staff, equipment, and the like in order to perform work subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and resources, and a small companys efforts must soon result in orders, or both the morale and the financial health of the business will suffer.A second risk is that White-owned companies may seek to cash in on the increasing apportionments through the formation of joint ventures with minority-owned concerns. Of course, in many instances there are legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire business that neither could secure alone. Third, a minority enterprise that secures the business of one large corporate customer often runs the danger of becoming—and remaining—dependent. Even in the best of circumstances, fierce competition from larger, more established companies makes it difficult for small concerns to broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate benefactor, they may truly have to struggle against complacency arising from their current success.Q. The author would most likely agree with which of the following statements about corporate response to working with minority subcontractors?a)Annoyed by the proliferations of “front” organizations, corporates are likely to reduce their efforts to work with minority owned subcontractors in the near future.b)Although corporations showed considerable interest in working with minority businesses in the 1970’s their aversion to government paperwork made them reluctant to pursue many government contracts.c)The significant response of corporation in the 1970’s is likely to be sustained and conceivably be increased throughout the 1980’sd)Although corporations re eager to co-operate with minority owned businesses, a shortage of capital in the 1970’s made substantial response impossible.e)The enormous corporate response has all but eliminated the dangers of over expansion that used to plague small minority owned businesses.Correct answer is option 'C'. 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